BO Yoder´s S&P Update

The S&P 500 (ETF Proxy – AMEX:SPY) has bounced away from its lows and is in the process of forming a lower high. Our forecast is that price will wriggle a bit but move higher up into the reversal zone drawn on the chart.  A retest of the lows is highly likely, so my posture remains one of stalking a short if price can reach the forecasted reversal zone.

I don’t think that it is any coincidence that my favorite stock symbols are coming out of the oil and gold sector this week.  These are traditional hedge areas that investors run to when they are afraid about the stability of the stock markets.

The Gold ETF (GLD) looks bearish on the daily chart.  A head and shoulders pattern has formed, and this will likely attract sellers to this market. However, 3D Apex Predictive Failure Technology™, the engine that drives these forecasts is indicating that this bearish pattern is likely to fail, thus hinting that a broader reversal is pending for the price of Gold.

The odds are about 40% that a retest might create a double bottom, but the odds are much higher for a higher low, so watch as price enters the green “buy zone”, and consider taking entry on any signs of reversal or strength.

There is not enough data to forecast an accurate take profits target at this time, I will update this “market map” as more price action unfolds.

Denbury Resources (NYSE:DNR) has held up wonderfully throughout the recent market micro-crash.

A retest of the lows is about a 30% possibility here, so don’t be surprised or worried if that should occur.  As long as price stays above the lower edge of the green forecasted reversal zone, we expect to see this stock build power and launch to the upside as a new uptrend forms.