S&P 500 is starting the prognosticated correction - GUNNER24 shows all the price and time targets

In April, the S&P 500 marked the predicted high near 1215 (GUNNER24 Forecasts, Issue 04/04/2010) exactly at 1219.80. In this issue I would like to work out the importance of those highs and the correlated trading decisions.

April 2010 closed narrowly within the 2nd double arc thus confirming the next main target of 1375. Bullish! In the monthly setup, the price is following the steeper chart anchored Gann Angle. Since April fell on the important time line we may expect an important high there, and so we always have to reckon on a correction in the upwards trend. For May 2010, the downwards target of the coming correction will be 1120, the chart anchored Gann Angle that is lying under the price. Since the trend is our friend overlapping all the other time frames as far as the dominance is concerned and no reversal candle has been produced yet we will have to assume that any correction within the upwards trend can be finished at any moment and that's when the monthly GUNNER24 Up Setup would rule the roost again.

The fact that in April 2010 we produced an important high is backed by the following 5 Candle GUNNER24 Down Setup of the all time high:

In this setup, too, April is lying on an important time line which mostly signalizes important turning points in price and time after all. Besides, the price rise was braked by the resistance giving green first double arc.

Taking a closer look at the candle count with the combined initial impulse of both GUNNER24 Setups now, we will count the following way:

The initial impulse of the GUNNER24 Down Setup begins at the high of the red 1 and it ends at the low of the red 5. The down trend ends at the low of the 17th candle which at the same time is marking the beginning of the new 3 Candle GUNNER24 Up Setup the initial impulse of which encloses 3 candles. Thus, April 2010 is the 14th candle of the current up swing. 

But - looking now at the following count:

and counting the candles beginning in the last significant high (07/2010) the following interesting situation results:

Being the 21st candle, March 2009 marks the end of the down trend. With the green 1 (April 2009) the new count begins and – that's it – with candle 13 April marks a possibly very important turning point.

The appropriate 2 Candle GUNNER24 Down Setup looks like this:

We recognize that April 2010 marks its high exactly at the 1*1 Gann Angle which here again should ring in the rebound energy for a coming correction or a sideways move.

Here is my sum up of that extensive analysis:   

A correction of the upwards trend is likely since that's signalized by three different GUNNER24 Monthly Setups!

And the April 2010 high at 1219.80 is significant. The upwards trend is not going on before it is broken on monthly basis. The expected correction or sideways move, respectively might last two to three months ending at 1100-1120.

The actual weekly 7 Candle GUNNER24 Up Setup indicates that target range, as well:

Also in the weekly GUNNER24 Up Setup, the S&P 500 as well as the Dow Jones has reached the upper line of the 3rd double arc producing last week a reversal candle. We went short with the week closing. The new GUNNER24 Down Setup starts at 1219.80. A probable target for the three to five week correction will be the primary Gann Angle at 1100.

However, this short is very risky because the price closed several times within the 3rd double arc, thus activating and confirming the 4th double arc as to be the next target! That's why the high is to be worked on by the reverse and double technique!

Let's have a quick look at the state of the daily shorts:

Gold:

Gold is on fire, silver as well... There isn't much more to be said. By April, the price closed in the acceleration zone again which means quick moves which are to be siphoned off best by increased day trading. As to gold, a quick rise to 1320 is to be supposed. The only thing that is still braking the rise to the main target of 1320 is the powerful, resistance offering chart anchored red broken diagonal. The allowed price margin of the next two months are sketched in the above setup.