New Highs Imminent for the Broad Market (New York Composite)
From the April 6th springboard low, the bull market has resumed its Tower of Power advance – with new highs in the New York Composite Index (the broad market) imminent. Next stop: 11,250. The triangle formation (symmetrical or ascending) in the NYA found recent support at its upper pattern boundary and is now on target to head up to its next major price octave at 11,250. We should be there very shortly, and a move higher for the NYA will undoubtedly pull the Dow, S&P 500, and NASDAQ indices higher as well. I suspect we won’t see much media-focus on the action in the New York Composite – as surprising as it may seem – but once the NASDAQ punches through to new highs (very likely as well within the coming week) the financial media will be all over it.
I don’t have any short-term time targets identified as yet, other than the biggie I have for May 13th (+/-). In terms of price resistance, the 18,125 level for the Dow and 2,125 for the SPX may produce a modicum amount of short term resistance, but I am inclined to focus more on the 11,125 level basis the NYA and the upper pattern boundaries of the 1 X 1 channels for the Dow and S&P. Enjoy the ride higher…
Treasury Bonds / Yield
Price action in the TYX (yield on the 30 year bond) has seen this index pop back up above its 20 day moving average. Notice on the chart how this important indicator of trend is now flattening-out and poised to turn higher. Higher price for the TYX will pull turn the slope for the 20 day m.a. back to the positive. And higher TYX equates to lower bond prices – which is where I view this market as heading for the intermediate term.
Gold prices are continuing their counter-trend move higher. My time target for the next high-point reversal is about two weeks hence – roughly 10 trading days from now – at which point I still would like to see 1,250 tagged one more time before re-issuing my BEARISH advisory on the precious metals. For now I remain sidelined, but I expect a renewed entry on the short side in the vicinity of April 24th (+/-).
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