Stock Market Turn is Upon Us
Stock-Markets / Stock Markets 2013 Sep 17, 2013 - 07:25 AM GMT
SPX did turn just about mid-day and is challenging its uptrend line. There are a lot of issues the market must contend with. First, there’s the taper. Second, there the interest rate spike, which the Fed is not prepared and hasn’t planned for. Third, Janet Yellen could not see the last crisis, showing her to be unprepared for the next one, as well. She is still the first candidate for the Fed Chairmanship, but appears totally unable to think independently. Maybe that’s what Obama wants?
There may be even more bad news soon as uncertainty becomes a byword. This is the setup going into a Primary Cycle low due on or near October 10.
VIX has recovered from the morning spike and is now above Intermediate-term resistance at 14.39. This is a perfect setup for a three week rally into its Trading Cycle high, due on or near October 10.
To accentuate the move in equities, TNX appears to be starting a Primary Cycle with an expected high on or near October 3. This cycle could extend another week if it gained enough momentum. Or it could simply do a weak wave 4 correction, with Wave 5 taking it higher for another week. The Cup with Handle suggests TNX could go to 37.77 in the next move (Wave 3?). If so, it could be at the 32-year yield trendline at 40.00 by the time Intermediate Wave (5) and Primary Wave [1] is complete.
GLD appears to be in a hurry to go lower. Witness the truncated Wave 2. That suggests Wave 5 may be the largest of this series, or we may be seeing an extension requiring a more detailed wave structure. Right now the nearest viable target for GLD is 114.07, its daily Cycle Bottom. This is also where another Head & Shoulders neckline may reside. This one, if activated, may be huge. The alleged target is 43.51! I have been sitting on this for a while, but I may as well bring it up, since it is there and I can only be proven wrong when it does not happen.
Go figure!
Regards,
Tony
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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
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