Targeting April 23th for Next Tradable Low
The high I was anticipating near the end of trading on Thursday this week occurred right to the hour of my projection. And although I was prepared for some kind of pullback on Friday, the magnitude of the drop was a bit more than I had envisioned. Nevertheless, my bullish expectation for the next month remains undeterred. For the first three trading sessions of next week, I look for continued sloppiness with a modest downside-sideways bias towards Thursday, April 23rd. Actually, I’d be surprised if the market were to trade much lower; I rather suspect more sideways action than downward price movement for the balance of next week.
My hourly work points to mid-session this Thursday for my target low-point reversal. I have a plethora of cyclical and Fibonacci relationships clustering in-and-around Thursday, April 23rd at approximately 09:00 AM Pacific time for my expected low. I’d give that a few hours left or right but you get the point. I would use the first three or four days of next week to add to existing longs. But beyond next Thursday, I would absolutely put a halt to any further long purchases. My work still zeroes-in on May 13, 2015 for what I think could be a major market high.
Treasury Bonds / Yield
The price action for the TYX (yield on the 30 year bond) chart reflects a continued slide down the 20 day moving average. I look for stabilization here very shortly, followed by a renewed push higher. A push higher in TYX equates to a commensurate decline for the bond market.
Comex gold prices are straddling their 20-day moving average as well except the bias for this commodity is higher. The pattern of highs on the daily chart would suggest we are likely to see a reflex rally high in about two weeks at most. Ideally, I’d like to see Gold tag the 1,250 level one more time – which I think quite likely. Assuming I get the confirmation in my indicators, I will in all likelihood re-issue my BEARISH advisory on the precious metals at that point. For now, though, I’m content to advise remaining on the sidelines.
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