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Monday, May 16, 2016

Technical market update for the week of May 15th, 2016

"When others get scared I get greedy" Warren Buffet 

Market update for the week of May 15th, 2016
I updated the subtitle of this update when I heard Warren Buffet invested in AAPL, which I still like in this 90.50 range - as I tweeted last week.

 Last update as the market stalled, I suggested buying the dips and selling the rips. Now that we've seen the market walked down over the past few weeks, we're bottom picking again, and especially considering this week is Options Expiration (OPEX), and with the Memorial Day holiday just around the corner - that should bring short covering. We may see energy, and gold, decouple from the rest of the market, going into the start of the summer.  
GOLD - I have 2 outlooks for gold: 1. Bearish. 2. Extremely bearish. Gold got ahead of itself back in March, and instead of consolidating sideways, to lower, it's traded higher into a bearish wave b (head-fake rally). Now I think we're bound to see a nasty correction as plotted on the chart below. A shakeout in a powerful minor wave c of B.
The extremely bearish outlook for gold looks like new lows in a panic wave E  
I'm expecting the $SPX to bounce out of the hole first thing Monday morning. I think there's a good possibility we'll see mixed markets, with tech & financials leading again.
The chart below is from my public charts area, linked in the (left) side menu.
Here's the Dow chart - also in a parallel channel:
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