We left the cash market yesterday with a 3 day cycle projection of 1208 that was just about hit. The 2 day cycle turned up at the bell, with an initial projection of 1218. The SP futures have exceeded that in the pre market, hitting 1230, and now trading at 1222, suggesting a gap up on the NY open. The cash 5 day cycle centerline at 1225 could be the target and resistance, or at least an attractor.
The futures were pulling back as I was writing this at 9:15. At 1221-22, they are trading right around the convergence of the still descending 5 day cycle centerline and a 2 day inner cycle line that is turning flat. 2 and 5 day cycle indicators are on weak buy signals, but their position is precarious. If the Spoos drop below the 2 day cycle centerline now around 1216, the up phase would probably be finished. On the other hand, if they hold here at 1221, then the next move should be to the convergence of the 2 day cycle upper ribbon and the inner 5 day cycle channel line around 1235-39.
At the moment, it looks as though the 5 day cycle centerline at 1222 is holding and acting as resistance. A 2 day cycle high is due around now, but it is the last day of scam week (options expiration) and the bots usually make a shambles of cycle patterns during this week, especially on opex day. However, I like the bears chances if the Spoos drop under 1221 this morning.
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Gold appears to have been in a sideways up phase overnight. It needs to hold at the 5 day cycle inner channel line at 1724-25, otherwise it will head down again, possibly to 1700. It would need to clear the descending 5 day cycle centerline now at 1740 to get anything going on the upside. That seems problematic at this point.
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