• 308 days Will The ECB Continue To Hike Rates?
  • 309 days Forbes: Aramco Remains Largest Company In The Middle East
  • 310 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 710 days Could Crypto Overtake Traditional Investment?
  • 715 days Americans Still Quitting Jobs At Record Pace
  • 717 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 720 days Is The Dollar Too Strong?
  • 720 days Big Tech Disappoints Investors on Earnings Calls
  • 721 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 723 days China Is Quietly Trying To Distance Itself From Russia
  • 723 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 727 days Crypto Investors Won Big In 2021
  • 727 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 728 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 730 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 731 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 734 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 735 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 735 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 737 days Are NFTs About To Take Over Gaming?
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

Where Next for Gold-Silver and the SP 500 Indexes?

The market action in both the precious metals complex and the equities markets has been moving in clearly defined Fibonacci and Elliott Wave patterns for quite some time now. All of the recent peaks and valleys in both areas can be clearly demarcated with Fibonacci retracements and crowd behavioral patterns both in advance and in hindsight. I've written about this phenomenon numerous times publicly and every week for my subscribers as well.

The Gold and Silver movements I outlined a few months ago well in advance of the current bull moves. I had suggested we would see 1525-1550 on Gold at the next interim peak back in late January from the 1310 lows. So far we have hit $1508 and near term $1518 is likely before a pullback to the 1480 ranges. Silver has run up to my 45-47 window that I forecasted back when Silver was in the mid $26 ranges. The question is then, what happens next?

Back in August of 2009 I forecasted that we were about to enter a very bullish five year window for the precious metals, and this is based on my theory of a 13 fibonacci year bull market that began in 2001. Crowds move in reliable patterns and my opinion is the movement we are seeing now is the biggest of the 13 year bull because there is "Crowd recognition". Recall the huge bull market in tech stocks that began in 1986 and ended 13 years later in 1999 with a massive spike to 5000 on the NASDAQ. The final five years were the best for investors before the crash.

Looking at the current precious metals bull market, we are in year 10 now and it's like 1997 in the Tech stocks. The best is still yet to come, but there will be peaks and valleys along the way as the Bull knocks everyone off the whole way up. Most recently at $1310 in January and only a few weeks ago at $1382 for instance. When I wrote the August 2009 article, gold was around $900 per ounce, and now it's $1508. In August of 2010 I then forecasted that Silver was about to start a massive run from $19 per ounce, and since then we have rallied to near $47 in just 8-9 months. Silver is poor man's gold, and my theory really was simply that investors as a herd would view Silver as "cheap" and rush to buy it relative to Gold which would be viewed as "expensive". The bottom line is intermediately we are getting close to short term tops in both Silver and Gold, and corrections will ensue... but those will again be buying opportunities.

Below are my latest views on Gold and the near term direction:

Gold

The Equities markets are also in a multi-year bull market and in the most bullish of the phase as well. We began in March of 2009 and ran up for 13 Fibonacci months to April 2010 where I forecasted an interim top. Since then, we bottomed in July of 2010 in a wave 2 correction that was a 38% Fibonacci retracement of the 13 month rally. The rally to the 1343 highs was only wave 1 of a new 5 wave structure to the upside. The recent correction that surrounded the Japanese Earthquake was another wave 2 down in sentiment, only to be followed by a powerful rally of almost 100 points on the SP 500 index. This type of "shrugging off of bad news" reaction is typical of powerful major 3rd waves in Elliott Wave terms.

The most recent action bottomed at 1295 on the SP 500 and that was minor 2 down, and now what you will see if I'm right is a huge move to over 1400 on the SP 500 as the 3rd wave of this recent structure off the 1240 futures lows of March, begins to take hold. Strap on your seatbelts because this market is going to blast past 1400 and on to 1500 this year. You will also see the NASDAQ lead the charge and make a power move into the 3000's as well.

Below is my latest chart on the SP 500 Index:

SPX

I have not written an article or forecast publicly in a while as I prefer to keep this content for my paying subscribers, who get several updates a week on Silver, Gold, and the US markets. If you'd like to check it out, go to www.MarketTrendForecast.com and sign up for a discounted subscription and some free materials.

 

Back to homepage

Leave a comment

Leave a comment