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SPX, Gold, Silver, Oil, US Dollar, and NDX: Snapshots Across Markets


There are many interesting and tradable patterns developing across the board right now.


Yesterday both the preferred count and alternate counts anticipated a rally, which the market provided. It ended up closing dead center in the target zone for the alternate count, which kept it from being eliminated. The preferred count continues to anticipate some further upside, but both counts remain plausible.

Since there's not much to add to the S&P 500 (^GSPC) forecast of the past few weeks, I've decided to include a few quick snapshots of some other markets. First, a quick update on the SPX charts. The preferred count (below) continues to anticipate marginally higher prices, followed by a reversal from the wave 5 target zone. My current expectation is for at least a 4-7% correction to ensue from this zone, but until the up-trend actually breaks, I wouldn't advise front-running this particular rally -- unless you're a nimble trader.

Click to enlarge

Next, a close up of the alternate count, which hit the target zone dead-on. Trade above the 1367 highs would take this count off the table.

Click to enlarge

Moving on, below is a chart for silver (SLV). I've only published one article about silver in the past year: back on November 21 -- when silver was above 30 -- I predicted silver would move down to 25-27 to complete Primary Wave 4, and then reverse higher. This is exactly what happened, which lends credence to this count. This count anticipates that silver is now in its fifth wave up at primary degree, and will eventually go on to new all-time highs.

Click to enlarge

Silver appears to be in the process of completing a perfect five-wave impulse move off the lows (blue wave 1), which suggests it's due for a correction soon, as illustrated by the blue "2."

Gold (GLD) may be in a similar position, though I find gold's wave count difficult to pin down at the moment. I would be more inclined to trade the trend lines on gold right now. Gold chart below.

Click to enlarge

Oil shows a much different pattern over the very long term, and its advance since 2009 does not appear nearly as constructive as either gold or silver. It does, however, present a similar inverted head and shoulders pattern for the intermediate term.

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No positions in stocks mentioned.
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