SPX, SPY, Gold And GDX Technicals: 12_04_19

  • SPX Monitoring purposes; Flat.
  • Monitoring purposes : Long GDX (NYSE:) on 1/29/19 at 21.96.
  • Long-Term Trend monitor purposes; Sold long term SPX on 10/24/19 at 3010.29=gain 1.49%; Long SPX on 10/14/19 at 2966.15.
  • On yesterday’s report we said. “Going into last Wednesday the SPY (NYSE:) was up four days in a row. Four days up in a row, the SPY closed higher at least once 81% of the time in the next five days. Today’s volume jumped near 100% compared to several days before producing a possible short term “Selling Climax”.” Today’s gap down on the SPY may cancel the four days up theory, but there are still two days left to prove the theory wrong. If market does test last Wednesday’s high, a sell setup could develop. As previously mention in our reports that around holiday’s market reversals are common and Thanksgiving turned out to be a high. The next holiday is Christmas and last Christmas holiday marked a low. With the McClellan Oscillator below “0” and Summation index heading lower the trend is now down. We will be looking for the next bearish setup and a test of last Wednesday is possible. Follow us on twitter. @OrdOracle Ask for free 2 week trial.

    Above is the hourly SPY (NYSE:) chart going back to last Wednesday close with a 5 period RSI. When the hourly 5 period RSI reaches >94, the market has strong momentum and the final high is usually has formed. The close on last Wednesday RSI was 94 which is so far the high close. With the Four days up rule and with the hourly RSI (5) there is a possibility last Wednesday high could be tested. The potential test could setup a sell signal. Being patience for now. Join us on twitter. @OrdOracle.

    We updated this chart from yesterday. The bottom window is the Bollinger Band Width for GDX (NYSE:). When the Bollinger band narrows than the Bollinger Band width goes to a low level. The current low reading in the Bollinger Band width (bottom window) is near levels where previous impulse wave began. A narrowing of the Bollinger Band suggests an impulse wave is about to begin. Today’s gain in GDX suggests the possibility of an impulse rally beginning. Also notice that over the last month GDX has made lower lows as Bullish Percent index for the Gold Miners has made higher lows showing that more stocks on Point and Figure buy signals even though GDX made lower lows, which is a bullish divergence. Long GDX on 1/29/19 at 21.97. ord-oracle.com. New Book release “The Secret Science of Price and Volume” by Timothy Ord.

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