Mornin' all,
Gold - A ST bull triangle has formed on the hour chart, this could be a 4th wave with a 5th wave thrust to come to the upside. Very likely the thrust will be a psycho test of the 1800 level. A pattern I have noticed with gold when producing new highs is it's reaction to the price territory 1% below a centennial level. Ususually when PoG violates this zone, it proves that gold is not afraid of that level. It may pull-back out of that level, but it's generally a buying opportunity, because it is very rare for gold to come with in 1% of a centennial top and not exceed it eventually, no matter how far a pull-back. No major tops have formed in the 'psycho test zone'. Also, a full moon is also coming up this Saturday, I give the shadow of the moon cycles +/- 1 trading day.
SPX - I think we saw a bounce yesterday basically of the 38.2% fibo level around 1100. A small positive divergence can also be seen on the hourly oscillators, MACD and RSI. This could start an anticipated Dead Cat Bounce (DCB), but price must stay above 1100. I suspect that a dead cat bounce would move to at least the 10 EMA, and possibly higher over time to 1240 to 1260ish as a back-test of the break down area. You'll notice on my calendar below, the bradley turn date for July 29th and 30th, seems to have nailed this major break-down. Next major bradley turn date is December 28th 2011.
Corn, Wheat and Soybeans - The grains all held up very well under the recent stock market sell-off a sign of strength IMHO. Wheat's correction expanded a bit, but has put in a reversal candle, looks bullish while above 645. Corn has bounced off a previously strong lateral support at 660, looking bullish while above 660. Soybeans still inside it's massive bull-flag, moving above 1400 could produce a massive break-out in price.
Crude - Slid much further than I would have anticipated, it fell down to the 50% level and squarely in the middle of a long term support zone between 73.00 and 80. The daily candle pattern yesterday posted a bullish hammer. However, be careful, this market has a 3/10/20 bearish cross-over, but a daily close above the 10EMA (currently 87.42 and falling fast) would signal a potential bullish recovery.
Good Hunting.......
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