The stock market is nearing the ten week cycle low from November 4th, 2016. The daily Bollinger bands are tightly squeezed together suggesting a break-out one way or the other (an expansion of volatility). The SPX broke the uptrend line today only to close back above the line. Normally, this is a sign of strength, but the OBV did not confirm the recent highs suggesting the smart money has already moved away from the market. I would call this a sign of weakness.

All it takes is a straw to break the proverbial camel's back and that straw could enter the picture on Friday the 13th. We had a similar set up on Friday September 9th, 2016. This is not a prediction, but rather a head's up.

S&P500 Daily Chart

If a Friday the 13th event takes place (which is possible), I would then shift my March 2017 target to just down 5%, somewhere in the 2160's.

GDX looks as though it could fall hard here too into next week, just like early September. We caught the recent decline, then the up move into today (from yesterday), and then went short again near 23.18.

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 2016, 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.

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