After many weeks of up trend, there are talks of a correction. Starting with the comments from Ben Bernanke and the Market Events & News from Japan and Asia, there seems to be a chance for the bears to come in. However, there is still a lot of resistance and resilience with the bulls. Moving on to the charts, The Dow and S&P both seem to have completed the 30f3 of 5 of V. Please refer to the daily charts. There is a distinct 5 wave correction that is visible in the 15 min and hourly charts of both and it suggests that a short term bottom is formed and we are on our way to try to form a B of 4 and retest the highs or at least the upper trendlines that were briefly violated to form the 3. Look for the 61.8% retracement of Wave A at around the 15,450 to be a point where the bears will re-enter the markets.
As far as the Gold is concerned, we may have seen the end of this short term pull back with the formation of the B Wave of the 4 of 5 of the larger multi-year corrective ABC. Look for a test of the 1540 level in the coming months and on the down side, look for the break of the lows set this month to complete the 4 of 5 for the larger Rally to restart to perhaps above the all time highs.
The Dollar Index is very close to a short term high and perhaps ready for a larger correction. Wait for confirmation of the breaks of previous lows and channels as the index has been extremely volital and going side ways in the past week which is the case when the traders are divided and are trying to figure out in which direction the next move will be. Please refer to the charts.
Be careful and good fortunes...