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Is Barrick Gold Close To Finding A Bottom?

Is Barrick Gold Close To Finding A Bottom?

Barrick gold has been a…

Economists Polarized On Trump’s Tariff Plan

Economists Polarized On Trump’s Tariff Plan

Economists are polarized on Trump’s…



My goal is to establish the most likely path that the price of a particular asset will undertake and profit through ETF instruments both on…

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SPX: Follow Up of the Short Term EWP


I don't have much new to say today so this is just a brief update.

I maintain the scenario of a corrective pullback in progress from the May 22 high.

So far we have a 3-wave down leg hence price should be unfolding a Zig Zag down.

As I mentioned yesterday the down leg from the June 19 peak is not impulsive, therefore the assumed wave (C) instead of unfolding an impulsive sequence of 5 waves it should form an Ending Diagonal.

If this is the case then price is now involved in the wave (II) rebound.

The minimum target requirement for the assumed wave (II) is located at the previous support now resistance at 1608.

SPX 60-Minute Chart
Larger Image

The internal structure of the bounce from last Monday's lod, despite yesterday's overlapping move, should have concluded a Zig Zag of a potential larger Zig Zag or it could be unfolding a Double Zig Zag, if the pullback from yesterday's hod is corrective and does not close the opening gap at 1573.09.

If this is the case we have a potential extension target in the range of 1606-1614 for the next up leg (wave C or W).

SPX 5-Minute Chart
Larger Image

What was a support now will act as resistance so we have to see how price will behave at 1598 and 1608.

If bulls reclaim the first resistance then this bounce should top in the range 1608 - 1617.34 (0.618 Retracement) or not higher than the 50 dma which stands at 1618.50.

SPX 30-Minute Chart
Larger Image

Bonds remain a concern and could spoil my short-term bullish scenario. The thrust following a Triangle should establish some type of a bottom but so far there is no indication that TLT can set on an oversold bounce.

TLT Daily Chart
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