Waves Show The S&P 500 Should Be Headed For A New High

GDX (gold miners)-DLY

GDX has broken out of its correction channel.  At the same time, it may have filled a near-term objective on its P&F chart which could require a little consolidation before it moves higher.  The daily CCI does not show negative divergence but this does not seem to be always required in this index for a top to be formed at the daily level, whereby it appears to be much more consistent at the weekly time frame.  The MAs appear to be much better indicators of a trend reversal.  In this case we should watch for a decline below 38.58 as a sign that a short-term top has been established.  However, by having moved well past its 50-dma, the index has clearly given an intermediate buy signal (GDX).

PAAS (Pan American Silver Corp-DLY)

PAAS pulled back to its lower channel line after it reported disappointing earnings for its last quarter.  This was viewed as an opportunity by traders who were aggressive buyers. In the case of PAAS, both oscillators do show some negative divergence which could lead to additional consolidation.  The stock has been trading in a 9/10-point range for several months and should experience a good uptrend if it can get past the former top of 38 (PAAS).

BNO (Brent oil fund) DLY

Last week I suggested that, due to the negative divergence manifest in the CCI, BNO looked ready for a pullback.  This took place last week.  Now, the index must remain above its 50-dma or it will be retesting its former short-term low before long. 

Summary

SPX appears to have completed a 4th wave correction from 3723 and to have started on its 5th and final move of this uptrend.  After a little more consolidation, it should be ready to make a new high. 

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The above comments, as well as those made in the daily updates and the Market Summary about the financial markets, are based purely on what I consider to be sound technical analysis principles. ...

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