• 1 hour U.S.-China Tensions Are Reaching A Boiling Point
  • 3 hours Gold Remains Strong Amid Increasing Economic Uncertainty
  • 18 hours Morgan Stanley And Goldman Sachs Are Betting Big On This Budding Industry
  • 18 hours Global Corporate Debt Soars To $9 Trillion
  • 20 hours The Fed’s Slippery Slope
  • 22 hours Precious Metals Pulled Ahead Of The Pack In The First Half Of 2020
  • 23 hours Tesla Faces $20 Billion In Short Interest
  • 1 day China's Economic Recovery Remains Tepid
  • 1 day Silver Inches Closer To $20
  • 1 day The Secret Life Of Lithium
  • 2 days The Pandemic Proof $53 Billion Industry Wall Street Can’t Ignore
  • 2 days Will Gold Hit $2,000?
  • 2 days Trump’s Proposed Regulation Could Slow The ESG Boom
  • 3 days India To Auction 41 Coal Assets
  • 3 days Eldorado Sees Gold Production Soar In Second Quarte
  • 4 days Do Gold Stocks Still Have Upside Potential?
  • 5 days The S&P 500’s Top Companies Hold $2.5 Trillion In Debt
  • 5 days Electric Vehicle Rebound Bolsters Battery Metal Growth
  • 6 days BlackRock Makes A Run On Asian Stocks
  • 6 days Gold Prices Surge Above $1,800
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Fed Set to Spook the Markets Once Again!

The charts below show that the recent rally is just fodder for the beast. Prior to the last FED meeting on September 17, I warned of an impending sell-off due to the FED's statements. The S&P 500 fell from a high of 2020 to a low of 1871 in 8 trading days or about 7.3%! The BIG question this time is "how low?" not IF.

I have two downside targets: SPX 1913/15 and SPX 1828/30. Astro-wise, early this week, we have the "George Bayer Rule" of Mercury crossing the same path the sun did during a prior eclipse. The last time we saw this, the SPX fell 236 point in 4 trading days (late August 2015). We also have Mars joining in this time with Mercury.

The 5/10 week cycle low is due in early November. The last cycle low on September 30 was just the 5 week low. We also have the 7 week low due in gold and the mining shares in early November. GDX is sporting an inverted bearish flat. The commitment of traders shows excessively long gold contracts, that prior in this bear market has proven to be an important top when gold has gone above the 200 day moving average.


Larger Image

SPY Daily Chart
Larger Image

SPY Hourly Chart
Larger Image

GDX Weekly
Larger Image

The next important top should occur around Thanksgiving right before the next nesting of lows: the 5 and 7 week (and tax selling) low of around Dec 8. From early December to late December/early January should be quite bullish, but watch out, there is another low, the 20 week and 40 month Kitchin cycle low due in January 2016. How that forms, (I believe) will have a lot to do with the how far down the early November drop goes.

Meanwhile, Fed-speak this time around could be hinting at a rate increase within the next few months, something the recent rally participants may find less palatable than they had been thinking. Trick or treat!

 


Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info

We also offer auto-trading for those who don't have the time to trade their own accounts.

To view the details more clearly, you may visit our free chart look at http://charts.blustarmarkettimer.com
This web site is sometimes updated periodically as events unfold.

 

Back to homepage

Leave a comment

Leave a comment