Gold to Rally More, Stocks Should Drop

By: Brad Gudgeon | Tue, Nov 22, 2016
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GDX looks to rally hard in a 'c' of "C" wave, likely into Early the 25th. We could see GDX around 24.50. It looks like a bear rally. The jobs report on December 2 could knock the precious metals sector down like it did from November 9-14.

The SPX is running on fumes and should drop at least to the 2162 area by early Friday I would think. Higher highs into next November 30-December 1 look likely and up to around 2208/09. My target for next week of 2203 was hit today.

The stock market 40 week low (November 4 on the cash market and November 9 on the futures market) marked an X wave of a larger topping process. It is very odd for a 40 week low to be so shallow, but I have resigned to the fact that it has already come. By next week, we may see the Wave Y top with Z to come to the down side.

Wave X started on July 15th and ended on September 12th. Wave Y began on September 12th and should end next week. Normally, Wave Z of a topping pattern like this comes swiftly, but may take longer than either Wave X or Y. The next possible 10 week low would be due in early/mid January and then the 20 week low in early to late March. This coming low should be a much larger one than recent ones.

S&P500 Daily Chart
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S&P500 Hourly Chart
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GDX Daily Chart
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Brad Gudgeon

Author: Brad Gudgeon

Brad Gudgeon
BluStar Market Timer
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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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