DOW, NDX, SPX and Gold – Reversal in front

During the last trading week, too, the optimism of the market participants kept on unbroken. The bulls are driving the indexes from one high to the other. The still resting bears in the market are finally scared and shaken out of the market. That situation prepares the soil for a top next week, at least a short one.

In the weekly chart ES # has closed within the 2nd double arc and thus finally activated the 3rd double arc as a main target. Even though the price is at the important time line of the square the actual swing has not finished, the high not been reached, yet.

The upper limit line of the 2nd double arc at 1081 or the diagonal of the 3rd passing square just under it which will be reached next week could be a obvious target of that swing.

The supposition that the swing high is not to be expected before next week is based on the following NDX Daily GUNNER24 Up Setup:

In this setup the price is still in the dynamic space zone and it will not face its main target till Tuesday or Wednesday at about 1750. Before long we will analyze the resulting first targets for the shorts.

Also the actual NDX Weekly GUNNER24 Up urges that it's time for a change in trend. The week closed with the price exactly at the lower line of the important 3rd double arc which is the main target. The 5th double arc which is the second main target is activated if the price closes within that 3rd double arc. The daily situation means that we are going to dive into the 3rd double arc. 

Be prepared for going short next week. Only if you are inclined to sports it seems to be worth while taking along the last ticks of the move. On a daily basis we will cover all the longs. Like always, the 1 and 4 hour GUNNER24 Setups provide the precise entry signals.

Possibly, NDX is going to break the 2nd double arc on final quotation base with this month candle. If that break happens we would take up our 4th long position on monthly base. The 3rd double arc is going on being the final target for this swing. 

Let us have a look at the Gold, finally. On daily base, with the yesterday closing a new GUNNER24 Down Setup emerged.

The Thursday swing high fell exactly on a significant Fibonacci day related to the significant high of 2/20/2009. The yesterday reversal day together with the negative Stochastic divergence which is due to be reduced point to this: the uptrend is going to be at rest for a while and the price is going to join the 3rd double arc downwards next week. First target for the shorts between 985 and 990. 

But since the price closed within that 3rd double arc according to the rules, the 4th and 5th double arc should be reached towards the main trend. The targets 1034-1055 continue being active till the end of October even though we look at the Weekly GUNNER24 Up Setups.

In the current Monthly GUNNER24 Up, there's no cause to concern yet, either.