Another Pull Back in the Stock Market Due?

By: Brad Gudgeon | Sun, Feb 28, 2016
Print Email

Last week, I was doing what most traders were doing, being swayed by the momentum indicators. Last time we saw the momentum indicators where they are now we pulled back a little and then continued on up. That was early October 2015. The problem is, the current e-wave formation has an irregular bottom that formed after the February 8 low and that was on February 11, which suggests a move below the last low of SPX 1810 and soon. And here we have the astros confirming along with the very short term momentum indicators agreeing.

Astro-wise, we saw Pluto move into the 2nd house of business on Feb 26 (this is normally an important bottom). Today we have the SUN conjunct Neptune which normally marks an important turning point in the markets followed by the SUN opposite to Jupiter along with a solar eclipse on March 8th (another important astro turning point). If I was swayed simply by the technicals, I might be tempted to stay long like many still are. A move to new lows then a move to the .618 retracement just under 2000 by the end of March seems feasible. The 50% retracement area was tagged on the SPX Friday.

As far as gold and the mining stocks are concerned, I think they had their play to the upside and more down side is coming. The first target I'll call wave (a) should make its low toward the end of March, then a (b) wave bounce, then a (c) wave decline into May/June. The current e-wave pattern is suggestive of a hard throw down ahead for both gold and XAU/GDX. I noticed that Deuche Bank was recommending gold to its clients just at the wrong time, at least in my opinion. Eventually, according to the 8 year cycle, gold and silver cycle will shine again and that time is rapidly approaching. For now, I believe it's a trader's market.

SPY Daily Chart
Larger Image

GLD Daily Chart
Larger Image

XAU Monthly Chart
Larger Image

 


Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info
BluStar Market Timer offers auto-trading for those who don't have the time or inclination to trade their own accounts.

 


 

Brad Gudgeon

Author: Brad Gudgeon

Brad Gudgeon
BluStar Market Timer
Blog
eaglesoveramerica.com

BluStar Market Timer Investment Philosophy: The stock market is currently in a technical Elliott Wave Bear Market Rally. It has been exhibiting A-B-C type waves instead of the normal 5 Waves since the market topped in 2000. According to "The Original Works of R.N. Elliott", we are due for a move down to about the S&P 500 442/443 area in the next few years. In my opinion, this is no longer a buy and hold market, but a traders' market. We mainly swing trade the market with funds and ETF's, but otherwise trade according to the market's disposition and to the traders' discretion. For the year 2014, BluStar Market Timer is rated #1 according to Timer Trac. http://www.blustarmarkettimer.info

Disclaimer: The information provided by the BluStar Market Timer is to be used for educational purposes only. We do not recommend the buying or selling of any securities, are not registered investment advisers and do not offer investment advice. Stock market investing is considered risky. Market timers can and do make mistakes. Past performance is never a guarantee of future performance.

Copyright © 2014-2017, Bradley Ray Gudgeon, BluStar Market Timer, Eagles Over America. All rights reserved.

 

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com