Short-entries upcoming soon

Today, I’d like to suggest and reason the best – because safest = extremely riskless short-entries for the coming trading week in the S&P 500 index as well as in gold and silver. Like always, of course you’ll get some rather reliable downtargets according to price and time.

Let’s start with the stock markets

Tide has changed now in the US markets. The American stock markets are clearly situated in a correction phase that is supposed to leave a mark on the developments of the whole summer. As to my observations during the last days, many fellow analysts are tempting fate now predicting a big hefty crash respectively the beginning of a longstanding bear market, because… It’s not going to come to that..

So far, we’ve been observing mere reversal signals, hence the starting phase of a several week, well, 2 to 3 month correction/pullback in the strong bull market. It’s nothing more, nothing less.

The time factor doesn’t permit the big crash to happen the next days/weeks respectively till the end of the summer because – as to the prestigious fellow analysts – there is the threat of the rising wedges that have formed since the 2008 lows to dissolve downwards. The markets are going to fall below the rising wedge supports now, but this is supposed to be a false move in order to shake the bulls. After the end of the false move the US stock markets are expected to sally out to reach new bull market highs.

Again, the S&P 500 avoided to generate a GUNNER24 Sell Signal on monthly base by the end of the month of July because it succeeded in finishing July above the 2092. The alpha male closed at 2103. This, the very first sell signal in 2015 was newly averted respectively deferred. You’ll find the complete analysis on this possible very first sell signal in the free GUNNER24 Forecasts 07/26/2015.

Thereby, the weekly time frame is moving into the focus. This second most important time frame is supposed now to deliver the very first reliable sell signal of the year – probably as soon as within the next, at the latest the week after next - consequently making obvious for everybody that the US stock markets are indeed in the correction mode:

The currently valid GUNNER24 Up Setup in the weekly time frame makes clear the proximity of the index to the decision to flow into the correction, “visible” for everyone!

Justification: The 8 candle up begins at the Oct-14 lows. Almost the entire year 2015, the S&P 500 was trading around the first square line at 2086 = sideways market. 2086 is horizontal pivot for 2015. It has temporized more or less sideways since the beginning of the year using the 2086 as support horizontal and tenaciously coming closer sideways to its upwards target – the 1st double arc. After final upwards breaks of the first square line, the lower line of the 1st double arc is always the next important uptarget in the corresponding up setup and time frame, after all.

The sideways phase even succeeded – in the chewing mode – in reaching the upper line of the 1st double arc pinpoint at the 2132.82-July highs. Consulting the GUNNER24 Method, this simultaneous lower monthly high then started the correction phase. So far, the index is still defending the 1*1 Gann Angle… above, the 1*1 Gann Angle the market is always in the bullish, underneath in the bearish half of the up setup.

So, the 1*1 Gann Angle still resists on weekly closing base! Last week, the third test of the 1*1 Gann Angle took place. The next candle is becoming the decision candle because the market is jammed now between 1*1 Gann Angle support and proven 1st double arc resistance. I think, it should be obvious that the market will be pressed down by the strong function of the 1st double arc!

Please sell the very first weekly close below the 1*1 Gann Angle for the 2020. That’s where an important 1*2 Gann Angle support from the year 2014 is taking its course = the 2014 1*2 Support Angle.

If next week closes below the 2075 respectively if the week after next closes below 2077, the 1*1 Gann Angle will be lost on closing base. Thereby, the next lower important Gann Angle will automatically turn into the natural target. It’s about the 1*2 Support Angle, that takes course at 1960-1968 for September 2015. The 1960-1968 for September are the combined main target of this correction in the weekly AND monthly time frame! For deriving the 1968-downtarget in the monthly time frame please re-read free GUNNER24 Forecasts, issue 07/26/2015.

The certainly most profitable short-entry in the weekly time frame is at 2115 for next week! Please go short there strongly if the index indeed attains heights like that once more. At 2115, the upper line of the 1st resistance will take course in case the market needs another test of this arc ==> short!!

Will it be able to test the 2115 once more? At least it’s allowed because on Friday another bounce from the 1*1 Gann Angle succeeded, even though a weak one. So, the index reached and held the weekly support. Also in the daily time frame, an important daily support was attained with the Friday lows.

==> Thus, in the environment of the Friday lows the market reached a combined daily + weekly support magnet. This condition is permitting now a several day bounce. 2 to 3 days, maybe even 5 days:

Now, in the valid 1 Candle up (starts at the important July lows at the green dotted bull support) the market may aim at the 2nd double arc again in the daily time frame to fulfill there another test of the 2nd double arc at about 2100-2102. Since the 2nd double arc is triple proven daily resistance (watch dark red oval at lower monthly July highs and the dark red arrows), also this next test that perhaps occurs, the 4th!, is supposed to be denied really gathering pace then the correction!

==> First downtarget for the current correction in the daily time frame is the test of the 2055 at the bull support, no matter whether or not the 2nd is being tested again in course of next week!

However, since reaching the 2055 would suggest a lot that the 1*1 Gann Angle in the weekly time frame will have fallen finally (a weekly close below 2075/77, remember?!) the 1960-1968 will be activated finally as main target in that case. Ergo, the 2055 bull support should hardly provide a strong bastion for the next days!

A much more important support is supposed to be produced by the “round” 2000 mark on daily base. the 2000 is important 1st downtarget in the monthly time frame. For deriving the 2000-monthly downtarget please re-read free GUNNER24 Forecasts, issue 07/26/2015.

If the index accomplishes once more to head for the 2100-2102 in the course of next week, the very first short-entry for the next 5 trading days will be there. It will take a daily close above 2105 to activate the attaining of the 2119 in the weekly 8 Candle up setup.

Now to the best short-entries in gold and silver for the next days.

Basically it doesn’t matter where you go short, for the next panic wave will come definitely and soon. I keep on being positive about it. The current, extremely feeble consolidation just closely above the reached lows speaks for itself. I don’t see anything positive in the charts, not even a gleam of hope for the bulls:

The currently most valid weekly down setup in gold doesn’t raise hope any more. I mean, the “round” 1000 Gann Magnet will be worked off almost for sure till September. As early as last Sunday, I discussed this setup... click me... in extensive depth. That’s why now I’d like to focus only to the last candle and its impact on the future developments…

Last week certainly succeeded a bounce from the GUNNER24 Support Diagonal in the weekly low. Yet this candle newly indicates how weak gold is at the moment, how near it is to the next sell signal in the weekly time frame. The week closed again negatively, red body. The high of the candle was not even able to test the upper line of the 1st double arc – now first weekly resistance.

==> Thereby, the downforces keep on dominating. The only factor that prevents gold from continuing to fall is the support exerted by the space between the upper and the lower lines of the 1st double arc. However, since this support area is that weak so not even the very first weekly resistance (upper line of the 1st) was tested, in my opinion this condition is preparing the very imminent break of the entire 1st double arc support.

Best, because safest short-entry would be a test of the 1106 next 5 days. That’s where the upper line of the 1st double arc takes its course for next week. I cannot imagine that gold will newly be able to reach the 2*1 Resistance Angle. If so however, this angle will be at 1111 for next week. If the 1111 are reached within the next 5 days we’d have the 100 % successful short-entry with regard to the planned 1000 downtarget!

Finally, the 1000 in the weekly time frame will be activated if next week closes clearly below the lower line of the 1st double arc – this one is still providing closing-base support. For next week, the lower line of the 1st takes course at 1088!

The current valid up setup in the daily time frame allows another pretty safe short-entry into the panic wave for reaching the 1000 till September:

The setup starts at the 1072.30-bear market lows measuring 2 candles. Since the end of the 2 day first initial up impulse the metal has been dawdling in the first half of the 1st square. Gold has not been able to test back important up magnets. That’s how weak it is. It would be the Blue Arc and the strongest existing resistance in the daily time frame, the first square line at 1105.

==> Please, mind that the first strong weekly resistance is at 1106 for next week (upper line of the 1st double arc). The 1105 forms super strong daily horizontal resistance. Thus, we are able to evaluate a combined weekly and daily resistance magnet at 1105-1106 ==> please short at 1105-1106 if reached till next Friday.

If the metal is livened up a little before its total collapse, perhaps it will be able to test the Blue Arc for the first time before it sallies to reach the 1000. Maybe this test will be due on Tuesday. 13 days (at Fib numbers the markets tend to turn…) would have passed then since reaching the bear low.

By all means, an absolutely strongshort-signal is the very first daily close below the 1*1 Angle. Intraday, this one was fallen below several times, for the last time on Friday, but it still holds on closing base.

The very first close below the 1*1 Angle should be the sign for us that the downwards volute towards 1000 is gathering pace again!

Silver has actually finished the rebound since the course lows. On Friday, with 14.99 the current bounce high was delivered. Even though the 15.02 first square line resistance was not reached completely, it seems to me that’s all there was with the bounce:

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