Stock Market Top Near, GDX Makes New Highs

By: Brad Gudgeon | Sun, Mar 20, 2016
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Last week, I was looking for a top in the stock market within a week or two. We are still very close to that top and nothing has changed. The SPX needs to break decisively below the rising trend line. Normally, markets coming off a top are slow to descend, giving the short seller plenty of time to react. A strong move down into June looks forthcoming.

Regarding gold and GDX, I was looking for the potential of new recovery highs in gold and GDX around the time of the FED meeting announcement. We got that with GDX *(my upside target was 21.49 and we hit 21.42), but gold failed to make new recovery highs. The pattern in GDX suggests a strong move down in the early part of next week and then perhaps one more move up into March 28th +/- (21.90-22.00?).

SPX Daily Chart
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GDX Hourly Topping Chart
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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

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