Building on some excellent work by Steveo at Hawaii Trading (check out his fine site here, it is one of my favorites) I am looking at some possible near term targets for both Gold and the S&P 500.
First lets look at Steveo's SPX:Gold chart:
We can see that the inverse head and shoulders pattern is targeting 0.77 to 0.78.
Then consider some point and figure charts:
Gold
S&P
It is interesting that when we do the math using the point and figure charts at these low SPX:Gold targets we get: 1010/1360 = 0.74 which is remarkably close to the inverse head & shoulders target.
While this is one interpretation of the charts, it seems more likely that we will see gold hold the 1600 area for some time.
If that is the case, we could see the S&P bounce to the 1232 level ($1600 gold x 0.77).
Let's wait and see what happens!
First lets look at Steveo's SPX:Gold chart:
We can see that the inverse head and shoulders pattern is targeting 0.77 to 0.78.
Then consider some point and figure charts:
Gold
It is interesting that when we do the math using the point and figure charts at these low SPX:Gold targets we get: 1010/1360 = 0.74 which is remarkably close to the inverse head & shoulders target.
While this is one interpretation of the charts, it seems more likely that we will see gold hold the 1600 area for some time.
If that is the case, we could see the S&P bounce to the 1232 level ($1600 gold x 0.77).
Let's wait and see what happens!
Comments
Post a Comment