Positive omens for March, 2010 – Gold target confirmed

In the US stock markets, last week did not happen much. Last Monday, the anticipated down swing began with a reversal candle. That is where all the long positions were to be covered, by our recommendation. As well, the predicted back test of the first double arc took place. That again made possible the long entry. Now, with the Friday closing the prices are below the do or die mark again (2nd double arc) of which the break is expected next week.

Yet, like every month end, let us examine the general condition of the markets first: 

The situation: If the 2nd double arc on daily basis is broken within the next days the main target of the entire one year upwards trend will be activated. The Gann Angle which in the monthly S&P 500 GUNNER24 Setup on the top has priority over the price, is at about 1180 for March. The upper horizontal line of the 2nd square is at 1200. For March, the permissible low is at about 1015.

In the NDX, the primary Gann Angle lasted in February. In case that Angle breaks the rally will end. The price has dived into the main target of the up move again. The resistance diagonal on which the NDX is parking exactly by the February closing price is a mighty resistance representing the do or die line. If we break it upwards next week or the week after next it should go off then rapidly for the next four to five weeks through the buy target. But we will have to keep in mind that the NDX is at/in the 3rd double arc which is the main target. By a possible window dressing at the end of the month it may break downwards as well very, very quickly. I don't like the price parking exactly on the said resistance diagonal. Such a signal always suggests that something has been exhausted to the limit. So we must be able to change very quickly to the short side or think short, respectively in case the monthly primary Gann Angle breaks downwards. That possible change in trend as well as the expected up move should result powerful.

As mentioned above, we are long again waiting for the break of the 2nd double arc. Thus, the next long target would be activated at 1870, the next long entry would be defined. If the primary 2*1 Gann Angle breaks a short entry will be to be looked for and the position to be turned by the reverse and double technique. First target in that case would be the 1*1 Gann Angle where we may expect another rebound upwards, then testing the 2nd double arc from below for the third time. In that case, the break of the primary Gann Angle would be the first strong warning sign telling us it is about a failure on daily basis and the monthly resistances are really harder to be overcome than I expected first.

The YM # is acting exactly as forecasted in the last issue. Here, too, the rally in price and time should follow the primary Gann Angle. As you can see, I keep on expecting that the Double Top will have been formed through the end of March.

The situation: In gold, last Thursday we ascertained the low of the counter trend down swing exactly on the important time line. All in all it's a perfect GUNNER24 Up Setup: 8 Candles Impulse (that already indicates a strong up move which can go until the 5th double arc). It rebounds at first from the upper horizontal line of the first square, followed by a counter trend swing to the important time line. There, by the emerging reversal candle the first long signal is produced (Gann Angle retracement). Then, on Friday the second buy signal (Blue Arc break). The further long entries should take place according to the text book...