Dollar Index (DXY) ~ Daily Continuation

Its difficult to make much of the Dollar Index on the longer term scales, but in the shorter term this is a market that looks headed lower. An -a- = -c- target would be 76.56. DXY bears should consider 79.38 as stop for any short positions. All the waves have a corrective look off the lows; so, we may be witnessing a triangle development of some kind. Anticipate sideways/lower price action next several days.
c

-b-

-a-

Andys Technical Commentary__________________________________________________________________________________________________

Gold ~ Weekly Continuation

Whenever a market meanders through a well-defined trendline as if it didnt even exist, its typically a sign of a triangle development. Thats what Gold did in the circled area. So, were going to stick with this idea--if its a triangle, it will be either a neutral triangle that ends near the a-wave bottom or it will be an expanding triangle where the d-wave high will exceed the b-wave peak and the e-wave will break below the c-wave low. An expanding triangle would be quite the whipsaw.

e a c

Andys Technical Commentary__________________________________________________________________________________________________

Gold ~ Daily Continuation

In the meantime the trading philosophy has been to stay with the trend as long as possible but to be continually raising the stop loss levels for bulls/longs. That concept has worked well as the market has continually held minimum support levels for several weeks now. The 23.6% retrace has been a very good level to use as first level support and it should continue to be used. A break below $1,724 should stop out long positions. For those looking for a tighter stop, please consider $1,761, the previous shorter term peak.
d b

1,761

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ Current Rally

The current corrective move yielding no more than a 25% correction has lasted 41 trading days. It this is going to look like all the other such patterns, then it should have a several days longer to run.
41 Trading Days; Max Retrace = 25%

COPIED from 2/20/2012

Andys Technical Commentary__________________________________________________________________________________________________

S&P 500 ~ Current Rally with Weekly Support

Last week the case was made that the current rally had at least several more days to run based on previous similar waves that have occurred since the March 09 lows. This market continued to grind slowly higher last week. This is now an extremely well defined trend channel that every arm chair technician is watching. A break of the trendline lower should trigger strong selling. Consequently, bulls should continue to raise their stop-loss levels on long positions.

This would be support area on a breakdown.

Consider using 1340 and 1326 for first and second levels of support. 1326 would be a 25% retrace of the entire last move--something this market has failed to violate yet.

Andys Technical Commentary__________________________________________________________________________________________________

PLEASE NOTE THAT THERE IS ADDITIONAL INTRA-WEEK AND INTRADAY DISCUSSION ON TECHNICAL ANALYSIS AND TRADING AT TRADERS-ANONYMOUS.BLOGSPOT.COM

Wave Symbology "I" or "A" I or A <I>or <A> -I- or -A(I) or (A) "1 or "a" 1 or a -1- or -a(1) or (a) [1] or [a] [.1] or [.a] = Grand Supercycle = Supercycle = Cycle = Primary = Intermediate = Minor = Minute = Minuette = Sub-minuette = Micro = Sub-Micro

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