• 3 hours Brexit Woes Weigh On The British Pound
  • 4 hours Forget Turkey, This Is The Biggest Threat To European Finance
  • 5 hours There’s No Hiding From Google
  • 6 hours Turkish Lira Bounces Back After Qatar Bailout Pledge
  • 7 hours What Happens If Tesla Goes Private?
  • 9 hours China's Most Powerful Weapon In The Trade War
  • 11 hours Can The S&P 500 Shake Off Negative Sentiment?
  • 1 day Standards Go Out The Window As Employers Struggle To Fill Jobs
  • 1 day The Two Trillion Dollar Markets Amazon Hasn’t Conquered
  • 1 day Digital Supermodels Outperform Humans
  • 1 day France Could Lose Billions In EU Trade Route Redirection
  • 1 day Beer Giants Are Striking Out With Millennials
  • 1 day What Is Bakkt And Can It Take Bitcoin Mainstream?
  • 1 day Tesla’s Board Delivers A Stern Message To Elon Musk
  • 2 days Bitcoin Could Challenge Gold As Major Asset Class
  • 2 days Google In Talks With Tencent Over Cloud Business
  • 2 days Tech Giants Charge Deeper Into $8 Trillion Healthcare Industry
  • 2 days Lockheed Stock Soars On $480M Pentagon Contract
  • 2 days Ontario Moves To Slow Cannabis Drive
  • 2 days The Tech That Will Shape The Future Of Megaprojects
Time To Buy A Lada? Russian Auto Sales Are Booming

Time To Buy A Lada? Russian Auto Sales Are Booming

Russia’s flagship carmaker was once…

U.S.-Turkey Tensions Take A Dangerous Turn

U.S.-Turkey Tensions Take A Dangerous Turn

U.S.-Turkey tensions have reached a…

David Banister

David Banister

Dave Banister is the Chief Investment Strategist and commentator for ActiveTradingPartners.com. David has written numerous market forecast articles on various sites (SafeHaven.Com, 321Gold.com, Gold-Eagle.com, TheStreet.Com…

Contact Author

  1. Home
  2. Markets
  3. Other

The SP 500 and Gold Update, a Bear and a Bull Cycle

Back in mid April on Kitco.com I wrote a market forecast calling for a top in the SP 500 index and an ABC correction. Since that time I had one intervening update on both Gold and the SP 500 index, and this is a June 5th follow-up.

Gold should continue to back and fill as I postulated around the 1200-1235 area's, until the next surge taking it up to 1300-1325 US per ounce. The burning matches we call currencies are getting hotter, and fingertips are getting burned in Europe a little at a time. The Elliott Wave patterns I use as my underlying basis for forecasting are continuing to look bullish for the precious metal. In addition, it's a darn good alternative to fiat paper during this period of the Kondratiev winter where debt is repudiated and washed out of the system.

The SP 500 index or the US broader markets if you will, continue to unfold in my predicted A B C correction. I forecasted in pre market on May 25th that a "3-3-5" ABC low pattern was completing that morning from the April highs, with an intervening bounce likely. The problem is this "Bounce" as it were, has only recovered a 38% re-tracement of the April highs to May lows. The upward correction was mild in percentage terms, and the gap down in the SP 500 index and markets on Friday morning portends lower lows to come. A weak bounce and a solid thud is not near term bullish. My ultimate forecast called for 92-97 on the SPY ETF by mid September 2010, and I am continuing to stick with that as the likely outcome before the Bull can resume the advance in earnest. This would be a 50% re-tracement of the 13 Fibonacci month rally from March 2009 to April 2010. I look for the summer to be choppy and volatile with a likely downside bias. As I thought in April, it's a sell in May and go away year until the summer ends. Trading profits could be made on the 2x/3x bear and bull ETF's, and we plan to work with those this summer in my paid website services.

If you would like to view an up to the minute June 5th video on the SPY ETF and my updated forecasts, please click this link to view the video: http://www.activetradingpartners.com/articles/2010/06/the-sp-500-index-june-5th-video-update-poised-for-new-lows/

If you think you may benefit from my Market, Gold, and other big picture forecasts, you can learn more at www.themarkettrendforecast.com, and all of our services at www.thetechnicaltrendtraders.com.

 

Back to homepage

Leave a comment

Leave a comment