The Brains Trust, page-9847

What a period to have been away from my charts – for some reason this always seems to happen.

At this stage the SPX has followed my most favoured course which was to come back and do a bit more work in the bottom half of the range of the major fall and then start a move back up towards the high. Yes, I admit that move down last week was pretty scary but then that is the market we have now so we had better get used to it.

Our market is suddenly behaving to chart a lot better than it has for some time. By that I mean making nice little trendlines and fulfilling counts nicely. Up to the end of Monday’s trading it was in the most perfect little downtrend on the hourly and will break that downtrend today. For months I have been critical of everyone who analysed our market against the XJO but I think at this stage it might be looking a bit better. Does that mean the banks are looking better? Well that is a hard question. Perhaps other things in the XJO will be able to overcome the drag banks have been able to exert for the past year.

Gold is my worry. I have mentioned numerous times the overhead resistance from the past five years but at the same time it has considerable support below current levels. The question I have now is whether that support is going to be sufficient. So a bit worried here and need to see how the next few days play out.

Will have a better idea of the picture when I have a bit more time to analyse everything closely.