Broad Market and Gold Projections

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I'm looking again for the SPY to work its way down to 9497 and probably over 45 months from mid-April.

We were in front of this latest downdraft and also correct in my bullish projections for gold at the same time. Gold has hit $1,210 and the SPY has hit sub-113, which was the initial area for a minimum bottom. We have to put aside some of the computer-related problems and look at around 110111 as the recent bottoming areas on the SPY ETF.

I'm looking again for the SPY to work its way down to 9497 and probably over 45 months from mid-April. My projections are for a bottom on or around September 15th, plus minus a few days. There are trading opportunities during this 5-month correction in this bull market, so it does not mean one has to be 100% in cash. However, mutual fund investors and index investors are best to be on the sidelines for the most part.

Following is my projection for the SPY ETF on a go forward basis. Back in November of 2009 I actually projected 121 on the SPY when it was trading well below that figure for an initial market top. Therefore, my projections now for 9497 seem reasonable to me using my methodology, with potential to spill within a few points of that 94 bottom to 9192 ranges on an oversold situation.

SPY hits initial 113 target, more downside to come

David Banister
Active Trading Partners

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