Breaking News

SPX, Gold And HUI Technicals: 09/13/17

By Tim OrdMarket OverviewSep 13, 2017 11:06AM ET
SPX, Gold And HUI Technicals: 09/13/17
By Tim Ord   |  Sep 13, 2017 11:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • SPX Monitoring purposes; Short SPX on 8/30/17 at 2457.59.
  • Monitoring purposes Gold: Neutral
  • Long-term Trend monitor purposes: Neutral.

Market Volatility (top), SPDR S&P 500
Market Volatility (top), SPDR S&P 500

It is said the VIX leads the SPDR S&P 500 (NYSE:SPY) in the opposite direction. Today the SPY a higher high and the VIX made a higher low and a bearish divergence. This setup also occurred at the early August high where the SPY made a higher high and the VIX made a higher low. The pattern that appears in play is the “Three Drives to Top” and the “third Top” may be forming now. This is option expiration week which normally has a bullish bias and therefore market could hold up this week. An early clue that a decline has started would be for the McClellan Oscillator to close below “0”; the current reading is +125. We have a minimum downside target near 2400 on the SPX. Short SPX on 8/30/17 at 2457.59.

Stocks Above 150-DMA
Stocks Above 150-DMA

A bearish situation is present. A large decline can occur when the NYSE McClellan Summation index turns down before reaching +500 and the stocks above their 150-day moving average turns down before reaching 70%. The McClellan Summation index closed yesterday at +385.68 and still rising and the Stock above 150 MA stands at 61.29%. If both turn down from here, one could expect a worthwhile decline. The chart above shows the times when the McClellan Summation index turned down before reaching +500 and when the stocks above 150-day average turned down before reaching 70%. If the “Three Drives to Top” pattern plays out, the chart above would suggest the decline would break 2400 SPX minimum downside target. Short SPX on 8/30/17 at 2457.59.

HUI:Gold Ratio
HUI:Gold Ratio

Above is the monthly HUI:Gold ratio (bottom window) with its monthly RSI. A bullish present is indicated when the Monthly RSI for the HUI:GOLD ratio stays above 50 (current reading is 50.01). The pattern forming on HUI:Gold ratio appears to be a Head and Shoulders bottom; a break through the Neckline will confirm this pattern. Normally the HUI/Gold ratio leads the way for HUI for a bullish outcome. It’s a little hard to see but HUI is testing the high of the Right Shoulder where HUI:GOLD is not, showing HUI is stronger than HUI:GOLD and a modestly bearish sign suggesting the current consolidation may not be complete. When HUI:GOLD ratio starts to outperform HUI than, the uptrend may be beginning. Next major cycle low is due later this year and could come as early as October to as late as January. Though the long term trend is bullish, the shorter timeframes are still mixed. Still neutral for now.”

SPX, Gold And HUI Technicals: 09/13/17

Related Articles

SPX, Gold And HUI Technicals: 09/13/17

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email