Flash Alert – S&P 500 and Gold – 2.15.14

Michael Murphy
2014-02-16
16
Feb 14

The march towards a double top near 1850 on the S&P 500 continues, and may have achieved its objective on Friday at 1838:

(Thursday’s chart)
140214 SPX D

I expect the advance to stall out now, and retreat to the 38.2% level that is now at 1801. There is a small chance the market topped on Friday, and we’ll know that if 1801 is broken decisively. It’s far more likely that the test of 1801 will be successful, and then we’ll get the final move up towards 1850 around the end of February.

The gold train has left the station, with the current upmove just the early beginning of a new trend:

(Thursday’s chart)
140214 Gold D

This move is 12 days old, which usually requires a rest. One characteristic of these lock-out moves is that they don’t give the underinvested bulls a graceful entry point. I expect it will be that way until gold gets to $1,410-$1,440 over the next few months.

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