The SPX could take a plunge Monday, but the set up is there for a nice rebound into October 14. I think we finally get my False Break of the Rising Wedge and the rebound that takes us above 2200 SPX. October 14 should be the high for the year.
GDX and the gold complex are due for a nice rebound rally, but much damage has been done. A move back into the mid 26.00 area for GDX is the minimum expectation for an October 18 top. It may take a couple of more days to get kick started as the buyers are hesitant and selling into rallies. There is also a solid green candle on the daily chart that bothers me in the very short term.
Any selling in the stock market on a gap down Monday, with a concurrent gap up in the gold futures, will likely be a drag on the PM’s into Tuesday.
We are setting up for a nice post election sell-off:
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