Weekend Update … Not a Great Week for the Equity Bulls

Last week we saw the markets revert back to their major trends, with the reversal in the S&P 500 pushing this market down .4% from major resistance at 1230.
Gold and silver on the other hand moved higher with gold moving up over 3% for the week, and silver following suit with a gain of 4.5%. The closes this week on Friday, for both gold and silver, are all time high, week ending closes, and are very bullish.
Last week, we referred to the fact that Warren Buffett invested $5 billion into Bank of America, symbol BA. This week we saw the true colors of the banks and the fact that they are in deep trouble. For the week, Bank of America lost 6.3% and still has more to go according to our Trade Triangle Technology.
In today’s weekend wrap, we are going to do something very special, and that is apply a long term projection for the S&P 500. We will show you where we think it is headed, how long it’s going to take, and where the ultimate target zone is.
Now please remember, these are projections and are based on classical technical analysis. Obviously if our Trade Triangle technology indicates otherwise we will respect that indicator as it is reflective of market conditions. We all know events can and do change and we are cognizant of that fact. I will be doing this analysis at the end of the video so please be patient.
Now  let’s go to the weekly charts and see what happened last week in the major markets according to our Trade Triangle technology.
S&P500: Change for the week: – .24%
Monthly Trade Triangles for Long-Term Trends: = Negative
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Negative
Combined Strength of Trend Score: = – 55
Silver: Change for the week: + 4.62%
Monthly Trade Triangles for Long-Term Trends: = Positive
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Positive
Combined Strength of Trend Score: = + 90
Gold: Change for the week: + 3.03%
Monthly Trade Triangles for Long-Term Trends: = Positive
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Positive
Combined Strength of Trend Score: = + 90
Crude Oil: Change for the week: + 1.16%
Monthly Trade Triangles for Long-Term Trends: = Negative
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Negative
Combined Strength of Trend Score: = + 55
U.S. Dollar: Change for the week: + 1.34%
Monthly Trade Triangles for Long-Term Trends: = Positive
Weekly Trade Triangles for Intermediate Term Trends: = Negative
Daily Trade Triangles for Short-Term Trends: = Positive
Combined Strength of Trend Score: = + 65
CRB Index: Change for the week: + .81%
Monthly Trade Triangles for Long-Term Trends: = Negative
Weekly Trade Triangles for Intermediate Term Trends: = Positive
Daily Trade Triangles for Short-Term Trends: = Negative
Combined Strength of Trend Score: = – 55

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Dollar’s On the Verge of a Relief Rally…… Look Out!

From Chris Vermeulen of The Gold and Oil Guy.Com……..

Let’s talk about the dollar for a moment… The US Dollar has been stuck in a very large trading range during the past 4 months. But when the dollar actually breaks out of this pattern in either direction we should see some big price movements across the board in stocks and commodities.

From July through mid-August I was bearish on the dollar. But over the past 2 weeks the price action has become more neutral/bullish in my opinion. Its clear there is still indecision with the dollar value because every surge in price either up or down is quickly followed by a surge in the opposite direction. The key here is that the support level down at the 73.50 area has held more than three times and now I think the downward momentum is about to shift. The UUP bullish dollar etf is a good option.

Dollar Index Chart


Gold Chart:
Looking at the gold chart I see potential for another sharp drop to the low $1600’s. While I like the look of this chart for lower prices there is still a wild card which is the Euro-Land issues… I’m not willing to bet on lower prices because we could wake up any day to some poor news which instantly sends gold higher. Rather I am waiting for things to unfold then look to buy again for another 10-20% gain on the next rally.



Crude Oil Chart:
This chart is straight forward… The trend is down and at this time all bounces are to be looked at as shorting opportunities.


SP500 Index:
The equities market has broken down sharply over the past couple months and now we are seeing a rebound and small cap stocks are making big gains. With the dollar looking bullish and stocks trading up at resistance I have a feeling we may see another downward move within the next week or so to test the lows or make a new low before putting in a real bottom.

Mid-Week Trend Trading Conclusion:

In short, I feel the market overall is leaning towards lower prices in the coming week or two. After that we will have to re-analyze because it may be a fantastic buying opportunity for stocks and commodities. Consider joining me at The Gold And Oil Guy for ETF trade ideas on the SP500, Oil, Gold, and Silver with great accuracy.