Preparations for the short entry

We saw another strong week in the stock markets. They’ve been rising for the 4th consecutive week since the October lows. From the 1075 low the S&P 500 rose by more than a 20 % in just 18 trading days. Seen from the Fibonacci count, after 21 trading days GUNNER24 is correspondingly expecting a significant high at the high of next week with a following significant pullback.

In the GUNNER24 Forecasts, issue 10/16/2011 we analyzed that the S&P 500 rally wouldn’t go further than to the weekly 1*2 Gann Angle:

In the course of this, last week the aimed 1275 price target was exceeded. The reason is that the market rose faster that it was expected to, seen from the timing point of view:

Last Wednesday, with its 1221 low the market tested the important 1*1 Gann Angle. The following sparkling rebound from the 1*1 Gann Angle – that is now representing a very strong support, really not being supposed to be broken downwards any more in the course of the upswing – led to a very strong ascent towards the 1*2 resistance Gann Angle.

This 1*2 resistance Gann Angle is and keeps being the magnet and thus the target for this upswing, no matter if it is now going to be reached faster than expected. In the summer (red circle) the 1*2 Angle on weekly basis has proved as many as four times to be a very strong resistance. So it’s understood that this long-term resistance is facilitating a beautiful short chance on daily basis. And only on DAILY BASIS we are going to go short at 1298. Stop loss will be a weekle close of more than 1325. The target on daily basis will be the 1215 at first which is admittedly the lowest possible target. Possibly the position will be covered even earlier being switched into long. That depends very much from the rebound conduct of the market at the 1*2 resistance Gann Angle, for the most probable down target results from those circumstances. Here’s where you can always consult the actual stop-losses and targets of the actual trades:

Trading Performance – Gold

Trading Performance – US Stock Markets

Trading Performance – Forex-Silver-Copper

Correspondingly, at the beginning of next week we’ll cover also the long position on daily basis of the NASDAQ-100 at 2417 we went in at 2306 on 09/16.

The Dow Jones is standing closely in front of a strong monthly resistance mark, as well:

The monthly 3 Candle GUNNER24 Up Setup is showing us that the market rebounded clearly from the long term resistance of the 3rd double arc in April/May 2011 after reaching the year high. For the first time the July candle touched the 2nd double arc from above. For the second time August touched this support area finally breaking the important 2*1 Gann Angle then, making thus the 1*1 Gann Angle to become the long term target. This one will be reached – within many, many months or years, respectively!

The October dipped into the strong support of the 2nd double arc. The rebound from this mighty support area led back to the 3rd double arc, as analyzed in the issue of 10/09 already.

The re-break of the 2*1 Gann Angle is a very strong monthly long signal that might lead to new year highs in December. But for the moment a rebound from the lower line of the 3rd double arc is to be expected. This lower line of the 3rd double arc is lying at 12320 for Monday, and at the latest on Tuesday or Wednesday the marked is supposed to turn downwards from there. At the 11830 magnet (intersection of the 2*1 Gann Angle with the horizontal support of the just passed square) the market is expected to swing upwards again in the course of November 2011 in order to close then, in December, at least within the 3rd one, but maybe even above it.

Gold has resumed its long-term upwards trend: 

With the break out of the first square overcoming the long-term resistance at 1680 in the course of last Tuesday the starting signal for the current gold rally was triggered. Additionally, in one go also the first double arc in the actual daily 2 Candle GUNNER24 Up Setup was overcome during the upswing. The target of this upswing is at 1774. By the Thursday high, at the natural horizontal resistance of 1754 a high was marked. Since the reaction to this daily resistance was very moderate – only a very weak test of the upper line of the first double arc was to be seen – the current upswing is supposed to pick up speed again very fast. At the latest on Tuesday the consolidation at the highs that is taking place just right now is expected to be dissolved upwards successfully. We’ll cover the present long positions at 1774.

The 1770 area is a very strong resistance region because of its position in the middle of the just passed square in the actual monthly 8 Candle GUNNER24 Up Setup:

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