The nominal 2 day cycle on the SPX index ($SPX) is in a choppy down phase with a projection of 1210-1212 on the cash ($SPX). However, 5 day cycle indicators have yet to roll over on either $SPX or the SP futures. The futures are holding near the 5 day cycle centerline which is now at 1214 after bouncing from an inner 2 day cycle channel line near 1208. The 5 day cycle centerline on the cash is now near 1221. As long as the market stays below 1221 cash and 1214 on the fitires the short term bias should be down. A recovery above those levels would suggest that the 5 day cycle up phase was getting a second wind.
As scam week (options expiration) closes, the pinning bots often swing into overdrive, keeping prices in a narrow range. It might be a good afternoon to do some Christmas shopping. Opex hedging and rolling operations also tend to play havoc with cycle patterns. It’s always trickier this week. As a result, we have a saying at Capitalstool.com, “Friends don’t let friends trade scam week.”
Here’s a look at the Spoos 30 minute bar chart as of 1:35 PM NY time.
You can follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.
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Gold (GC) has been in a nominal 5 day cycle up phase since yesterday. The up phase has been weak, essentially moving sideways. 1600 is now resistance. If they can crack 1605, then gold could develop more upside momentum, with the next resistance area at 1615 to 1624. On the other hand, a drop below the 2 day cycle centerline at 1587, and especially the 5 day cycle centerline at 1584 should trigger more downside.
The technical outlook for gold and the Precious Metals stocks are updated each morning in the Wall Street Examiner Professional Edition Precious Metals Report. Try the Professional Edition risk free for thirty days. If, within that time, you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.