Before I begin this weekend's commentary, I just want to broach the subject of astro-finances. There are many in the so called Christian world who believe that astrology is of the devil. I just want to say that if it is, he sure is in control. Like reading e-waves, I view astrology as a tool to gauge mass psychology. Back in December, I mentioned a planetary signature regarding Israel, the military and terrorism for December 27. That is the exact date that Israel struck the Gaza strip. I seems that the planets are like some giant clock. Back on Nov 4th, 2008 we had a Saturn-Uranus Conjunction right on the very day of the top. There are 5 due between then and July 26, 2010 (the BIG Bottom?). The next one is due on Feb 5, 2009. There are other signatures that are looking for a bottom around Jan 23, 2009 +/- 3 trading days. There is a new moon and a solar eclipse due Monday. Every thirteen weeks or so +/- 2 weeks, we see an important top in the stock market. The last top was Nov 4th and so we are here again looking for an early Feb top My read of the market using e-waves with all this is that we are going to see a big down day on Monday to take out the SPX 800 level (787?). On Tuesday we bottom in the gold shares and NASDAQ (quite possibly the SPX with the latest there on Jan 29) and make a 7 day run for the NASDAQ (see October 24-Nov 4) and an 8 day run for the gold shares (see Oct 24-Nov 5). The gold shares already made their low on Jan 15th, but I believe we could see a serious pull back into early Tuesday in that sector (not taking out the previous low tho'). Gold itself made a strong rally Friday and could easily give up all its gains like perhaps 40 or so dollars Monday and then rally to $990 (GLD $975) by Feb 2. Feb 2nd should be the momentum peak for gold shares and the stock market as measured by the SPX should tag somewhere in the 970's by Feb 5th. Feb 6th should see GDX hit the 44/45 zone. What is so surprising about this move in gold is that it is doing so in the face of a stronger dollar. The 4-month/ 8-year cycle low is due around Feb 13/17 for the gold sector and the 55 day cycle low in the stock market is due in the same time frame. Whether we hold that bottom remains to be seen as another 64 trading day cycle low is due around Feb 25. The 6.5 week cycle top is due March 17/18 +/- 1 week, so any bottom (and probable new lows in the stock market) in February is likely to be bought and with fervor. We could even see a return back to the Nov 4th top near SPX 1007 and the falling 200 day EMA
01-23-09 02:52 PM 811 is a buy area. Remember, they are always three steps ahead of you. http://quotes.ino.com/chart/?s=CME_ES.H09.E&v=s
Hard to imagine that 800 is not retested at all within these 2 days. Reason - It is clear on YM that we are having a multiple days down side triangle. For NQ is a flat ledge. And ES is a mess. That is usually a continuation signal, unless 830 area is taken out and act as a support soon. On the other hand, bulls would not want to see 800 printed at all, because touching that again may open up a huge can of worms.
S/r areas: 852/856 838/840 820/823 798/802 783 747/752 I can see a fall back to about 800 but the hourly is solidly bullish and it seems to me that the markets will rally for a few days. 920 by end of week? or 740? I note market is ignoring bad news. Sign of bullishness...
Pull of upside gap from 13th is strengthening, if no downside after 10:00 am release, 65-70 upside target.