• 2 days Investors Are Patient With Unprofitable Giants
  • 4 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 6 days 5 Stocks To Keep A Close Eye On This Year
  • 8 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 8 days Central America Is Ready For The Bitcoin Hustle
  • 10 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 11 days Top Performing Stocks As Inflation Fears Grow
  • 12 days US Airline Stocks Take A Beating On New EU Restrictions
  • 13 days This IPO Could Open Sustainable Fashion Floodgates
  • 14 days Crypto Crime Nets Another $2B Fraudster
  • 16 days This Week’s Hottest Meme Stocks
  • 18 days Why World Markets Should Be Watching Germany Closely
  • 20 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 22 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 24 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 24 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 25 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 26 days China’s Tycoons Are Getting A Serious Reality Check
  • 28 days U.S. Cannabis Space Heats Up With Telling Tilray Acquisition
  • 29 days Consumer Price Index Hits 13-Year-High
Brad Gudgeon

Brad Gudgeon

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…

Contact Author

  1. Home
  2. Markets
  3. Other

Short Term Bottom at Hand in Stock Market?

Last week, I was looking for a nasty down week in the stock market, but up in GDX, GLD and NUGT into Jan 7th. GDX made a sudden reversal down on Jan 8th and is likely confined within a slight downward trend within an upwardly tilted bull flag until around Jan 21st. The stock market has either already bottomed or likely to do so no later than mid Monday Jan 11th.

Overall, I think we are in the early stages of a bear market that could take the SPX down to near 1000 or slightly lower by October. We are in year 8 of the commodity cycle low (last seen 2008, 2000, 1992, 1984, and 1976).

Astro-wise, the negative aspects of last week are leading us to a more favorable pattern this next week. We have a set of positive trines due between Jan 12-14, with a Bradley, solunar/CC turn due Jan 13-14. Cycle-wise, the 4/8/16 TD low was due mid Friday +/- one TD. Any possible further downside on Monday should be contained to a mid-session or early reversal time frame.

There is overhead resistance around 1985-93 SPX and we could go down to 1910 Monday before reversing. A break of 1910 +/- 3, would suggest a move down to test 1867. We could also rally from the get go Monday. The gold stocks and technical indicators are not suggesting a meltdown like August 24 on Monday, but with Mercury retrograde anything is possible.

S&P500 Daily Chart
Larger Image

Market Vectors Gold Miners Daily Chart
Larger Image

The market is now clearly in a trade up and down, or put your money in the bank mode. Bear market swings can get wild with huge sell-offs as well as huge short covering gains. We seek to capture some of those gains trading the 3X ETF's and have done well doing that over the past year. All of our signals are tracked via Collective 2 and our verified results may be seen at our web site.

 


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
BluStar Market Timer offers auto-trading for those who don't have the time or inclination to trade their own accounts.

 

Back to homepage

Leave a comment

Leave a comment