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S&P 500 ~ Daily

The price action the last few days has forced me to revisit this particular pattern which was highlighted on 12/19/11. The wave up from 1200 is not acting like an impulse at this point as it¶s channeling too well (green dashed lines). All the of the price legs from the ³x´ low look corrective in nature. Therefore, I¶m left with a diametric, a seven-legged correction. The market still looks poised for a corrective move lower sooner rather than later; but, it¶s impossible to tell exactly where the peak of e-wave will come. We will need to see a break of the uptrend channel before we can get excited about selling the S&P 500 again.

e? a

(B) ³z´
g?

c

d

f?

b

REPRINTED from 1/22/2012
³x´

(C)

Andy¶s Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ Daily with Weekly Support and Resistance

REPRINTED from 1/22/2012

My attempt to short this market did not last that long. I only see one good resistance point at this point, the 1347 level--the point at which the market really collapsed last year. Bulls should monitor the channel as well at the 23.6% retracement at 1289. At present, I¶m short-term neutral this market and would look to short only on a break below 1288.

Andy¶s Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ Daily
Only one new S&P 500 for the weekend. The well formed steep trend channel continues to hold. I still see large resistance at 1347. The market still appears poised for a correction lower, though I¶ve been thinking that for more than a week now (been wrong). Short term support now lies at 1302. A break of that level should start a larger correction down.
Resistance = 1347

e?

a c

(B) ³z´ g?

f?

d

b

(C)

³x´

Andy¶s Technical Commentary__________________________________________________________________________________________________

Gold - Daily Continuation
The gold market continues to reward those carrying length. Though, it¶s becoming clearer now that that move is µcorrective¶ in nature (choppy channeling higher). I¶m raising stops for longs: 1632 is the 23.6% of the entire bounce an it aligns pretty well with classic chart support. I¶ve also highlighted here the 38.2% retrace of the entire move lower--it seems like the market is µfeeling¶ that level and slowing down a bit in front of it. From a triangle development perspective, however, the $1,692 would be a nice target as the 61.8% of b-wave.
b

REPRINTED from 1/22/2012

d

e

a

c

Andy¶s Technical Commentary__________________________________________________________________________________________________

Gold - Daily Continuation
We continue to raise our stops for long positions and the market continues to truck higher -- that¶s a good thing. Gold blew through last week¶s resistance points. 1682 is now first level of resistance, the 61.8% retrace of the move up from $1,649.20. Bulls should consider trimming positions at this point -- i.e. get rid of 30-50% of gold length as we¶re now heading for a stronger area of resistance between $1,752 - $1,768.
b

d?

e?

a

c

Andy¶s Technical Commentary__________________________________________________________________________________________________

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Wave Symbology "I" or "A" I or A <I>or <A> -I- or -A(I) or (A) "1³ or "a" 1 or a -1- or -a(1) or (a) [1] or [a] [.1] or [.a] = Grand Supercycle = Supercycle = Cycle = Primary = Intermediate = Minor = Minute = Minuette = Sub-minuette = Micro = Sub-Micro

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