Mining Shares, Gold And Stock Market Forecasts
The stock market, as measured by the S&P500, reached its 115 trading cycle top the third week of April. The next important cycle low is due on July 5th. The SPX is in process of making a Head & Shoulders Top, and should continue higher into the mid-point of the Mercury Retrograde Cycle around May 11th. My target price is 2080. Friday was the new moon low, but also a top for the precious metals complex.
Conversely, the mining sector should hit a short term bottom on May 11, before eventually bottoming on the May 18-20 expected double bottom. Commercial COT’s are record short on gold and gold’s 20 week low looks to be due on week 22 from the December 17th bottom. The dollar chart looks like it has formed an Irregular Flat Bull Flag with a strong move up due in the coming 2 weeks.
The IMP and Rising Wedge on GDX in the charts below show what I expect in the days and weeks ahead.
Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info
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