SP500 and Gold in Last Stages of the Rally from July
Source: David Banister, Market Forecast (12/7/10)
"A terminal wave is underway before a good-sized correction ensues. . ."
Investors should expect the SP500 to rally up to 1285 as a minimal upside target, with the market likely peaking in the Mid January 2011 period prior to a new correction pattern. That correction will take the markets down to the 1150–1180 ranges more than likely from the January highs and knock the sentiment levels back to bearish before the next big advance. Below is where I see the current wave patterns; as you can see, this is the 5th and final wave stage of the advance. Ride it up, but lighten up as we approach my figures is my advice. Subscribers to my TMTF service have been riding this stage of the bull long since early July, and we keep them updated every week on the action.
Gold has also completed its 4th wave corrective pattern at $1331 per ounce recently, and as I have forecasted recently should continue its upward trajectory to about $1480–$1525 before a good-sized correction will ensue. Gold bottomed this summer in a classic wave 2 correction at $1155 per ounce, which was a 50% Fibonacci retracement of the rally up to $1225 from $1040. My objectives are for this pattern to complete around the same time as the SP500 peak in mid-January, as well. Downside objectives from there are likely to be to the $1310 per ounce range from the $1480–$1525 peaks, but more on that as we approach. I do not like to get too far ahead of myself in my projections, taking it one leg and pivot at a time.
If you'd like to be consistently ahead of the major market and precious metals moves and profit from that positioning, consider subscribing today. Visit www.markettrendforecast.com for the details and a coupon to subscribe.