​2700 On Gold Should Be An Easy Target ​

SPX Monitoring purposes; Sold long 4/9/21 SPX at 4128.80= gain 6.16%; Long SPX on 3/24/21 at 3889.14 (SPX).           

Monitoring purposes GOLD: Long GDX on 10/9/20 at 40.78 (GLD, GDX). 

Long Term SPX monitor purposes; sold long SPX on 1/15/21 at 3768.25= gain 10.80%; Long SPX on 10/26/20 at 3400.97.

Above is the VIX which trades opposite of the SPY (SPX).  A bullish divergence occurs when the SPY makes a lower low and the VIX makes a higher low. This divergence is best shown in the bottom chart which is the SPY/VIX ratio. In general when the SPY is falling so should the SPY/VIX ratio and when there is a divergence than a reversal in the market may be near,  In early and late March there was a divergence for a bottom.  So far on this decline we do not have a divergence suggesting no worthwhile low forming here.  We did have a downside target near 411 on the SPY but so far we don’t have a bullish setup.  Bigger trend is up but short term consolidation is on going for now.  This potential consolidation could last for this week into next week (SPY, VIX). 

Yesterday we said, “The bottom window is the 3 day TRIN and third window up is the 2 day TRIN; when both are in bearish territory (like now) market has a hard time going higher short term.  The red vertical lines show the previous times when 2 and 3 day TRIN where in bearish territory.   The blue dotted lines show when the 2 and 3 day TRIN where in bullish territory and in most cases the market was near a low.  SPX did close at a new all time high on Friday but the TRIN readings where not in the fear levels needed to carry the market higher.  The previous lows near 410 SPY is still possible.” Today the 410 level was tested but the TRIN readings failed to reach panic levels which suggests no bottom forming here.   Today’s volume did surpass the previous lows over the last couple of weeks and suggests at a minimum today’s low will be tested again.  Decline may continue into next week.  Worst case scenario is pull back to previous highs of March near 395 SPY.  Staying patient for now. 

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Disclaimer: Signals are provided as general information only and are not investment recommendations. You are responsible for your own investment decisions. Past performance does not guarantee future ...

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Dragan 1 month ago Member's comment

Will never see 2000+ never. they won't let it happen Short the pops be rich.