Best of the Week
Most Popular
1. Crude Oil Price Trend Forecast - Saudi's Want $100 for ARAMCO Stock IPO - Nadeem_Walayat
2.Gold Price Focusing on May Cycle Bottom - Jim_Curry
3.Silver, silver, and silver! There’s More Than Silver, People! - P_Radomski_CFA
4.Is the Malaysian Economy a Potemkin Village - Sam_Chee_Kong
5.Stock Market Study Shows Why You Shouldn’t “Sell in May and Go Away” - Troy_Bombardia
6.A Big Stock Market Shock is About to Start - Martin C
7.A Long Term Gold Very Unpopular View - Rambus_Chartology
8.Stock Market “Sell in May and go away” Study When Stocks Are Down YTD - Troy_Bombardia
9.Global Currency RESET Challenge: Ultimate Twist - Jim_Willie_CB
10.The Coming Silver Supply Crunch Is Worse Than You Know - Jeff Clark
Last 7 days
Gold, US Stocks and Bonds - 26th MAY 18
Climate Change Canaries and Our Changing Climate - 26th MAY 18
Gold Junior Stocks GDXJ ETF Fundamentals - 26th MAY 18
What to Expect at a Critical Stock Market Point: End of a Wave 2 Rally - 25th May 18
Merlin Passes Top Tips for Buying and Using Premium vs Standard, Theme Parks UK - 25th May 18
Trump “Victories” on Trade are Anything But - 25th May 18
Crude Oil: It’s Here! - 25th May 18
Stock Market Distribution Pattern Revealed - 25th May 18
Stock Market Topping - Everything Looks Rosy at the End of a Trend! - 25th May 18
Trump Puts North Korea Nuclear WAR Back on Track as Plans for Nobel Peace Prize Evaporate - 25th May 18
Insane EU GDPR SCAM Triggers Mass Email Spam Attacks! - 24th May 18
Stock Market Higher Again, but Still No Breakout - 24th May 18
Study: Slowing Global Economic Growth IS NOT Bearish for U.S. Stocks - 24th May 18
What if This Week’s Rally in Gold is Already Over? - 24th May 18
EUR/USD – Reward for Bears - 24th May 18
5 Terrible Trading Mistakes That Rookie Investors Keep Making - 24th May 18
More Clarity for the Short Term for Bitcoin Price - 22nd May 18
Study: A Rising and Strong U.S. Dollar Isn’t Consistently Bearish for the Stock Market - 22nd May 18
Gold, Silver & US Dollar Updates with Review of Latest COTS - 22nd May 18
Upside DOW Stock Market Breakout May Be Just the Beginning - 22nd May 18
5 Reasons Why Forex Trading Is Becoming Such A Big Deal In SA - 22nd May 18
Fibonacci And Elliot Wave Predict Stock Market Breakout Highs - 21st May 18
Stock Market Ideal Cycle Low Near - 21st May 18
5 Effects Of Currency Fluctuations On The Economy - 21st May 18
Financial Conditions are Still too Easy for the Stocks Bull Market to End - 21st May 18
US Stock Market Elliott Wave Predictions for 2018 and Beyond - 20th May 18
Are You Still Fearful of Cryptos? - 20th May 18
US Stocks - Why I am Short-term Bearish, Medium-term Bullish - 20th May 18
Looking for a Turn in Gold Price - 20th May 18
GDX Gold Mining Stock Fundamentals 2018 - 19th May 18
Semiconductor Stock Market Canaries: Chirp, Warble… Soon a Croak and Silence? - 19th May 18
Three Drivers of Gold Price - 18th May 18
Gold Market in First Tertile of 2018 - 18th May 18

Market Oracle FREE Newsletter

Trading Lessons

Stock Market / GDX New Lows Coming: Panic Ahead?

Stock-Markets / Stock Markets 2015 Oct 12, 2015 - 05:58 AM GMT

By: Brad_Gudgeon

Stock-Markets

The stock market came back with a vengeance out of the late September low (5- week lows), but failed to come back evenly, creating a case of an inter-market bearish divergence. The Dow Industrials, NYA, OEX and SOX made a higher high above the September 17th top on October 9th, but the SPX and NASDAQ Comp failed to do so. The SPX came close but the Comp failed miserably. In charting terms, we have just created a "double top" and hence a 'double top reversal' is at hand. Normally, it runs a Fibonacci .333 to .382 past the previous low (1871 SPX) and that forecasts ideally somewhere between or near 1780-96 on the SPX within the next 5-6 TD's.


Cycle wise, we have the 7-week low due between October 13-19, with an ideal date of October 16 based on the recent runs of 38 TD's and the e-wave analysis combined with the current astro analysis. The current Bradley shows a turn due between October 8-10 with a middle power turn combined with a strong Mercury/Venus declination (last one was September 17), and another due on October 17th. This weekend sees the Sun opposing Uranus while Venus squares Saturn. This ends the Sun's translation to the Uranus/Pluto square, which in the past has created a sudden and dramatic shift in trend. This spells trouble for both stocks and commodities ahead. Mercury turned direct on October 9th right on the Gann 16 TD stock market top. This is when the precious metals sector tends to have reversals too. We also have the new moon on October 12th, which often times points to a top.

My e-wave/cycle analysis (chart below) shows a bearish complex overall bottoming pattern in the mining sector, which suggests a huge throw down over the next 5-7 TD's to new lows below $12.00 on GDX (gold and silver are still in a bear market). At the same time, the recent run up in the stock market (charts below) sported an irregular topping pattern suggestive of a huge throw down coming there too.

Later in the week, we have the Sun sesquisquaring Neptune (October 15) while Venus opposes Neptune (October 16) as Mars conjuncts Jupiter on October 17 (pointing to another turn to the upside after a nasty drop). The following week we have Saturn sesquiquadrate Uranus suggestive of a top (along with Mercury square Pluto) on October 22. This (to me) points to a low on October 16th and another one on October 26 (the next Bradley turn) with the intervening high (based on the August 24 low and reaction higher). Another high is due on FED day October 28 right after the full moon. The overall trend should be higher from October 16 into late November or early December. The "c" wave A from August 18-24 is the target I'm looking for on the upside, near 2103/04 on the SPX. GDX should make a low just under $12 around October 19 , and then trend much higher into the end of November to between $17-$18 a share.

The up volume on Friday was unusually close to what happened on August 17, a week before the infamous August 24 crash. Next week tends to be a bad one seasonally in the third year of a presidential cycle, so keep that in mind. I don't know what the catalyst will be, but we do have high tension in the Middle East right now.

SPY 7-Week Pattern Lows Chart

SPY 30-Minute Double Top Chart

Dow Daily Chart


COMPQX Daily Chart


GDX Hourly Chart


Notice that the 5 week cycle made a new low below the 20 week low on GDX. This is very bearish, as the 5/30 week low is due around Oct 16-20. This confirms the coming stock market plunge. GDX's 7 week topping pattern is due again late November or early December.

Overall, I do not believe October's expected plunge will end the downward trend in the stock market. The yearend rally looks to save the day temporarily, but I believe much more pain is coming in the early part of the coming New Year.

Brad Gudgeon

Editor of The BluStar Market Timer

www.blustarmarkettimer.info

The BluStar Market Timer was rated #1 in the world by Timer Trac in 2014, competing with over 1600 market timers. This occurred despite what the author considered a very difficult year for him. Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The website is www.blustarmarkettimer.info To view the details more clearly, you may visit our free chart look at www.blustarcharts.weebly.com Copyright 2015. All Rights Reserved

Copyright 2015, BluStar Market Timer.  All rights reserved.
Disclaimer:  The above information is not intended as investment advice.  Market timers can and do make mistakes.  The above analysis is believed to be reliable, but we cannot be responsible for losses should they occur as a result of using this information.  This article is intended for educational purposes only. Past performance is never a guarantee of future performance.

Brad Gudgeon Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules