Archive
9/11/2011
- Status of Key Market Parameters
- Broad Market Instability Index Has a Sign to Jump Up
- Broad Market Forming a 5-Week Sloping Rectangle Pattern
- S&P 500 Index is in “Basement” Phase
- Gold is in “Roof” Phase
- Gold Forming a “Bump-and-Run” Pattern
- Silver Still in “Bump-and-Run” Pattern
- US Dollar Broke Out of 5-Month Horizontal Channel
- Asset Class Performance Ranking with Gold Leading
- Sector Performance Ranking with Precious Metals Sector Leading
- BRIC Stock Market Performance Ranking with Indian Market Leading
The LWX Indicator in Last Four Weeks (Past)
The LWX Indicator in Next Four Weeks (Forecast)
Gold is in the “Roof” Phase
The gold index now is in the “Roof” phase (bull trap) of the “Three-Peaks and a Domed House” pattern and faces a potential risk of the “Plunge” phase sooner or later. As the inverse relationship between the two, currently gold reaches the “Roof” phase (bull trap) while the S&P 500 index gets into the “Basement” phase (bear trap).
Gold Index is Forming an 18-Month “Bump-and-Run Reversal Top” Pattern
The gold index is forming an 18-month “Bump-and-Run Reversal Top” pattern in the daily chart, as shown in the chart below. Watch prices against the “Sell Line” at 1850. If prices move below the “Sell Line”, the downside supports are 1) 1820 at the dotted pink line, 2) 1660 at the “warning Line”, or 3) 1500 at the “Lead-in Trend Line”.
Silver Index is Still in Bump-and-Run Pattern
The silver index is in a “Bump-and-Run” pattern. The downside supports for silver are: 1) 39 at the “Lead-in Trend Line”, or 2) 34 at the “Target Line”