Over the weekend, my thinking was we had higher prices ahead of us. I actually ignored the astrological reversal mid-zone of the Sun translating Neptune, Saturn and Jupiter on March 4th. My logic was the powerful, advancing MACD and momentum indicators. My main reservation was the lack of early volume.
We have now broken down through a rising wedge much like we did back in early November 2015; as well the 4 hour MACD and current action is very similar to that time frame. If we follow the same pattern, we should be down into the low 1700's SPX minimum by May 2016.
Gold and GDX could run sideways into or around FED day March 16, but I believe it is doomed to go much lower. We shorted GDX via DUST last week and Monday and covered by selling DUST early today on GDX weakness expecting a bounce, which we got.
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
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