SPX Drop into the 2130's Expected, Now What?
Yesterday, I wrote that I believed we were headed for minimum move down into the low to mid 2130's SPX this week. We tagged 2129/30 and then rallied to close at 2136. The pattern on the chart below is bullish into Oct 14/17. We finally got that "False Break" of the Rising Wedge I've talking about. The long awaited 2200+ area beckons now.
This final impulse up into the next Bradley top, Sun T-Square Pluto/Uranus super moon with Mars sq Pluto weekend suggests an October 17 top and next a November 21 low. We could easily see the SPX near or below 1950 by November 21.
The chart of GLD below shows gold bottoming on the exact 90 TD low October 7th. Gold should rise into October 24 and could easily take out all the selling since September 6th. GLD has yet to gap up hard and start to really run. Based on the last 18 week cycle low we are 1 TD behind. GDX made a double ‘irregular' bottom today, but gold and silver are not biting. Precious metals and the miners are begging to be bought!
Another thing I wish to mention: please don't trade this or any other forecast verbatim without getting proper updates from the author. Tracking the stock market is much like tracking the weather: you need to have regular updates. Things can and do change. With the changes, come strategy changes.
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Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years.
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