Andy's TechnicaI Commentary__________________________________________________________________________________________________

GoId - WeekIy Continuation (non-Log ScaIe)

A "symmetrical is a 9-legged pattern where the waves going in the same direction all share similar lengths and duration. This
move certainly fits this description. All of the up moves were 275-300 dollar moves while all the down/sideways moves were
generally flattish weak corrections. t still looks like Gold may have a "little more left in it before the ultimate peak,
but the symmetrical is the longest corrective pattern possible and this one seems to be very close to concluding.
t's possible we're in the final i-wave right now.
- X -
- Y -
( )
( A )
( B )
( C )
( D )
( E )
( F )
( G )
( H )
( H )?
REPRINTED from 7/31/2011
Andy's TechnicaI Commentary__________________________________________________________________________________________________
GoId - WeekIy Continuation (Log ScaIe)
As the late great Randy "Macho Man Savage used to say: "And the beat goes on.yeah."
Gold has been amazing in the last few years in that it has held to this perfect trend channel.
t has had plenty of moments of testing the lower band, but this week we get to see the yellow
metal test the upper band. The whole "look of the pattern still looks like a "symmetrical
formation, though the potential (G) wave has developed into an "expanding triangle, giving the
market the "blow off look.
This market has a very toppy feel and it appears poised for some consolidation,
but it's not a longer term "sell yet.
"Unfortunately, bulls won't know it's a "sell until it breaks the lower
dashed blue line, which is a long way below.
- X -
- Y -
( I )
( A )
( B )
( C )
( D )
( E )
( F )
( G )
( H )
( G )
( H )
( )
Andy's TechnicaI Commentary__________________________________________________________________________________________________
GoId - WeekIy Continuation (Log ScaIe) with RSI
The Weeky RS just recorded it's biggest reading in at least several years, if not ever. This might
be "cold comfort to the bears. Being extremely "overbought has not necessarily been bearish.
As we've mentioned many times, it's best to see "RS Divergence before attempting to make a
"market top call. This chart and reading says: "Yeah, it's overbought; it's going to come off in
the next few weeks and consolidate, but it probably doesn't signal the peak of the move.
Andy's TechnicaI Commentary__________________________________________________________________________________________________
GoId - DaiIy Continuation (Log ScaIe) with RSI
Maybe we're seeing some smaller scale RS divergence on the Daily chart. 've highlighted here
what looks like an "expanding triangle pattern up from the $1,308 low.
1308
( F )
??
"a
"b
"c
"d
"e
$1,478
mportant longer term support
Andy's TechnicaI Commentary__________________________________________________________________________________________________
GoId - DaiIy Continuation (Log ScaIe) with WeekIy Support
ou know you're in "nose bleed territory when even a 23.6% retrace of a minor leg could be a $100/oz move. Not a market for
the faint of heart. To prove that just this last wave has ended, we would need to see a down move bigger than anything yet
witnessed (the blue dashed box). n this case, the 23.6% looks like good short term support. The 38.2% retrace at $1,722 also
lines up very well with "chart support.
"d
"e?
Andy's TechnicaI Commentary__________________________________________________________________________________________________
S&P 500 ~ DaiIy
( A )
"w"
"x"
"y"
ast week noted the tendency of x-waves to hit exact Fibbonacci
retracements--thus wrote about 1256, the 61.8%, as being a good
target. Given the probability of the e-wave extending 261.8% of a-
wave, 'm not sure why failed to consider the 78.6%* as the better
target--missed that one.
"x"?
* 78.6% is the Sq. Root of 61.8%
If the "x" wave did concIude at 1104,
then targets for the z-wave wouId be:
1288: 61.8% of "y" wave
1251: 50.0% of "y" wave
1216: 38.2% of "y" wave
REPRINTED from 8/14/2011
Andy's TechnicaI Commentary__________________________________________________________________________________________________
S&P 500 ~ DaiIy with RSI
( A )
"w"
"x"
"y"
ast week's price action suggests that the e-wave (and thus "x wave) is not yet complete. The
other thing that should give bulls some concern is the lack of "RS Divergence on the Daily
chart. Testing or setting a new low below 1100 almost looks like a requirement looking at this
chart. As per last week's discussion, still think 1100 area will be "battleground support, though
a brief break below 1100 should not surprise.
"x"?
a
b
c
d
e
Andy's TechnicaI Commentary__________________________________________________________________________________________________
S&P 500 ~ DaiIy
"x"
"y"
a
b
c
d
(c)
-w-?
(a)
(b)
-x-?
-y-?
e
"x"
f were to "guess at the future price action given the wave count and the RS, it would look something like this. The e-wave of
an expanding triangle must be the most "complex wave of the pattern, so something like a -wxy- that finishes with a triangle
would certainly "qualify as being more complex than any of the other legs. will not be giving Weekly Support and Resistance
points on the S&P 500 for this week. The picture near 1100 has become quite muddled and vulnerable to a serious amount
whipsaw. %he bottom line is the same as the last few weeks. Longer term investors should be using rallies to get OU%.
Shorter term traders should be waiting on rallies to get SHOR%.
"z"
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Wave SymboIogy
"" or "A" = Grand Supercycle
or A = Supercycle
<>or <A> = Cycle
-- or -A- = Primary
() or (A) = ntermediate
"1" or "a" = Minor
1 or a = Minute
-1- or -a- = Minuette
(1) or (a) = Sub-minuette
[1] or [a] = Micro
[.1] or [.a] = Sub-Micro
!LEASE NO%E %HA% %HERE IS ADDI%IONAL IN%RA-WEEK AND IN%RA-
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