he weekend futures market received a massive dose of liquidity, sending the Pre-Market up nearly 3%. It appears that the minimum decline targeted by the complex Head & Shoulders pattern has been accomplished. What we are witnessing this morning is a minor wave [c] of wave iv, although it doesn’t feel like it.

Here are the overhead resistances. A Broadening Top lower trendline lies at 1197.00. Round number resistance lies at 1200.00. The 50-day moving average lies at 1206.59. Minor wave [c] is nearing completion, so one of those resistances should be the stopper for this bounce.

On a further note, Tuesday is our next cycle turn date. I had expected it to be a bottom, but today’s development clarifies the issue.

That leaves approximately 9 (calendar) days of decline to follow. I am sure that CNBC announcers will be dancing in the studio this morning, but there will be time to take short profits at a much lower level.

Gold futures also rallied this morning to challenge intermediate-term trend resistance at 1715.00, as I had indicated last week. It, too, will join the decline in the next day o so.

Regards,

Tony

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