Last week, I was looking for a top in the stock market within a week or two. We are still very close to that top and nothing has changed. The SPX needs to break decisively below the rising trend line. Normally, markets coming off a top are slow to descend, giving the short seller plenty of time to react. A strong move down into June looks forthcoming.
Regarding gold and GDX, I was looking for the potential of new recovery highs in gold and GDX around the time of the FED meeting announcement. We got that with GDX *(my upside target was 21.49 and we hit 21.42), but gold failed to make new recovery highs. The pattern in GDX suggests a strong move down in the early part of next week and then perhaps one more move up into March 28th +/- (21.90-22.00?).
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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