GLD broke its Broadening Wedge trendline and appears ready to launch into an approximate 20% decline from the trendline. While the next support is intermediate-term trend support at 162.68, there are no other supports between it and the daily cycle bottom (not shown) currently at 131.55.

XLF is yet another example of an extension morphing into an Orthodox Broadening Top, which is more severe than a Broadening Wedge formation. Notice that the Cycles band suggested the failed top might go as high as 14.98. In this case, it could not exceed the prior top at 14.86, making it a double failure. There is a potential Head & Shoulders neckline at 10.88, so this decline may go far in setting it up for yet another decline below 5.00 later this spring.

I will be leaving this afternoon for a weekend-long conference. I hope to write my Weekend Report on Monday.

Good luck and good trading!

Regards,

Tony

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As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals

Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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