Daily chart for S&P
Daily chart for NASDAQ
After a market rally of more than 2 months, the indexes finally closed convincingly down for the week. This is the dip that I’ve been waiting for. This week we will see whether the all important retracement level of 1215 will hold. If it does hold, we might be in the beginning of a huge rally up to 1550 on the S&P. However I believe we might at the beginning of a 6 months sideways movement.
Weekly chart for S&P
Monthly chart for S&P
During the last recession, the S&P hugged the weekly 200 moving average and the monthly 50 moving average for more than 6 months before it finally bounced off both moving averages and began the 3 year rally to 1550. It seems we are in the same position now.
Daily chart for Gold (GLD)
Gold is getting more volatile as it gets parabolic. The trend up to 143 is still intact though. We might continue to see huge swings in gold over the next few weeks.
Weekly chart for Silver (SLV)
Silver has gone parabolic too. I have used the weekly charts to show the huge shooting star at the top of the trend. If silver closes down this week, it may be the start of its downtrend back to around 20 on SLV.
Daily chart for Crude Oil (USO)
The trend up to 39 is still intact for now. I believe we should see some big and interesting moves for the S&P, Dow, Gold, Silver and Crude Oil over the next few weeks.
Daily chart for Natural Gas (UNG)
Natural gas closed at support at around 5.50 on Friday. Should this support fail, we will see natural gas make another new low over the next few weeks. However I believe natural gas is at or very close to a bottom and it is now ideal as a longer term investment play.
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