Bo Yoder’s S&P Analysis

The short squeeze in the S&P 500 (ETF Proxy – AMEX:SPY) is now complete as price has taken out the stops set above the 9/17/15 highs.  There is still a little bearish power to be dissipated, but our forecast is for price to reverse in the zone we drew a month ago. ($202-207). Look for signs of reversal in that area and expect to see a retest at least of the lows near $187, if not a complete breakdown leading into panic.

Micron Technologies, (NYSE:MU) never got down into the green zone to qualify a setup. Now, with our prediction in the SPY for a significant bear leg, it is time to reduce long exposure. Taking this chart off my list as the risk now is that it will set up and start to work out, then get slammed by the overall markets as they turn lower.

 

The Gold ETF (NYSE:GLD) is an exchange traded fund that tracks the price of an ounce of gold. When last I spoke of this ETF, price had formed a head and shoulders reversal pattern, which 3D Apex Predictive Failure Technology™ told me was likely to fail.  Fail it did, and now price is about 7% higher.  If the SPY drops hard, you would expect to see a rally in gold as these two markets are traditionally inversely correlated.  I’ve added a new green zone within with you could add to the position or open a new long position in gold as we wait for this super-cycle to turn and deliver us the next step in the world’s great economic “reset”