After an impulsive decline, SPX bounced back to the Bearish Wedge trendline and Intermediate-term support/resistance for a quick challenge before turning back down. There may be some brief support at the Orthodox Broadening Top trendline at 1390.00, but I don’t expect it to last. The next support is the 200-day moving average at 1385.34. Final support is at the Cycle Bottom channel line at 1351.90. I don’t know how fast these support may be taken out. It appears that the decline should be over in two weeks or less, since options expiration comes on December 21.

The fact that XEU made yet another extension to its retracement rally is beyond my comprehension. However, the Cycles Model suggests that a reversal may not come until tomorrow, at the earliest. XEU is in the final throw-over stage of the rally. It won’t be long now.

GLD (gold) is approaching its panic trigger point in the Orthodox Broadening Top formation. It is now below all nearby supports and isn’t expected to bounce, if at all, at that level. I know that there are several of you who are still bullish on gold. This is the time to cut the umbilical cord. Unfortunately, there is no safety being offered here.

I’m still getting over the Flu. The worst is past, but I don’t have all my strength yet. I’ll be filing a report for Michael Yorba later tosay.

Regards,

Tony

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Comments

Meir2u
05 Dec 12, 10:44

Model reliability

We are monitoring your analysis’s and comments. This is the second of the two weeks in which your forecast expect a market panic. Last week it didn’t happen.

Now we have this current week to track the quality and reliability of your models. To be noted here is also that you have called for a market panic during approximately one and half year know.

We give you the benefit of doubt and we will not hesitate to give credit where credit is due. Neither the opposite either. This week will tell.

despe906
05 Dec 12, 13:06

beware

Model reliability? You must be kidding.

Meir2u
06 Dec 12, 01:29

Model reliability

Agree, a large ? However, we will give it another week as posted earlier.

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