As our reports forecasted last week, we expected the market to grind higher to a new rebound top this week. The market did not disappoint today as futures SPX markets were pumped higher starting early Sunday evening. We expect 1-2 more days of upside possibly attacking the 2750-2800 area of SPX. From there, a drop lower into our April 21-22 target low of some sort. Tt has potential to be a lower low but our preferred line of thinking is a higher low. If the low of March 23rd is taken out by April 21 we have potential for some extension into April 27th. This would ultimately mean our lower target of dow 15500 is on the table. We may elect to put a short on for our accounts later this week .
We know the gold bugs are excited after a day like today but we must temper our excitement knowing the size of the current short that exists in the metals futures markets . The bullion banks won’t let gold run away without a fight. We expect GDX and gold to top as early as tomorrow! A drop into April 14th on bullion is indicated with our A.I. composite system. Miners may continue to drop and be dragged down by the broad market sell off into our April 21-22 share market low. We may short the miners tomorrow with our capital so be alert !
Oil is extremely oversold and the Coppock Curve has room to move higher. Oil by far has has the worst sell off of all asset classes. Hence, we expect it to grind higher into the end of April / early May time frame. We remain focused on larger opportunities in the metals and stock market currently.