Crunch Time

In the American stock markets the last days were marked by some extensive tests of the existing GUNNER24 Supports. As well in the daily as in the weekly time frame. The new highs of this upswing beginning with the first September trading day were marked precisely at the end of September. Besides – that September 2010... Through 21 trading days the US markets went into one only direction: Upwards. Without any correction. Do you remember the following quotation from out the issue of 08/22/2010 of GUNNER24 Forecasts?

Well, the 90 % probability of rising prices otherwise prognosticated in that GUNNER24 Issue definitely arose, and we've brought in some tidy profits on the long side!

Now it looks as if next week will produce the next pre-decision whether the upwards trend in the US stock markets by the end of the year is going to be just as brutal similar as the existing gold and silver uptrends or if we will have to reckon on an extensive correction with the new month of October first before we can work our way up to the expected year high (end of November/beginning of December).

The facts: In the actual monthly 3 Candle GUNNER24 Up of the NASDAQ-100 the month of September reconquered the primary Gann Angle touching the Gann Angle above the price at 2129.65 with the September high. You might say last week even the revolution inhibitor was put in action, that Gann Angle, you see which is hampering the market in its intention to go on rising.

The situation becomes interesting by the fact that the September high is coinciding exactly at the intersection point of that Gann Angle and the Gann Angle which comes from the 2007 high, red dotted in the chart. Thus the high was formed at a price and time magnet permitting certain conclusions on the further price course. Zooming now into the chart some other important things catch our eyes:

We discover that the Gann Angle from the 2007 high is pretty important for the market. That's exactly where the market had its actual year high in April, the rebound from that Gann Angle drove into a strong correction which was cought by the main target, the 3rd double arc. The rebound from the 3rd double arc confirmed the upwards trend of the market. The 4th double arc MUST!! be reached. The lower line of the 4th double arc is lying at 2058! But that hasn't happened yet. Last week the Gann Angle at least rang in a little consolidation. The October hasn't dared yet to approach that resistance angle. Thus it may perform like May. The May did not want to approach or touch it, respectively.

So there are two different forces which effect the October candle. On the one hand they want to pull up the lately dominating upwards forces. Those are: The magnet 4th double arc and the rebound energy from the 3rd double arc with the connected re-break of the primary Gann Angle.

On the other hand, the falling 2007 Gann Angle is proved to be a strong opponent to the market of which – with the September high – it was given such a strong hook by which perhaps at first it has to fall back onto 1917 approximately in order to reach the 4th double arc in the next attempt then.

The decision will be due next week. A week closing price of more than 2030 would mean that until the end of the year we will see at least the 2090 or even the 2150. That's my main tendency because the actual weekly GUNNER24 Up Setup makes me suppose so:

The actual monthly S&P 500 3 Candle GUNNER24 Up Setup is supporting another price rise:

The situation: With the September candle as well the NASDAQ-100 as the primary Gann Angle were reconquered and the rise of the Gann Angle above the price was stopped. The price and time magnet above the price is lying at 1269 and it's obvious that we'll go for it next week. The trend is your friend. Those 1269 are corresponding to a NASDAQ-100 of 2060. Sic!

In the daily 8 Candle GUNNER24 Up Setup we went long with the final break of the 2nd double arc. Target are the 1169 where we will cover anyway. From my point of view it's interesting that within the current consolidation the primary Gann Angle has not been tested for the second time. The reason seems to be the surprisingly strong horizontal support at 1141 which we can anchor in the setup. I just suppose that the said test will be due Monday or Tuesday being able then to produce the rebound energy that is necessary to go for the 1*1 Gann Angle. Furthermore conspicuous is the fact that the main target, the 3rd double arc will still be 10 trading days away if the price continues in its defined corridor...that should wear down the bears very much. SL for our long is the primary Gann Angle. You will be able to dare a short term sell after the 1169 will have been gone for. AND if then the primary Gann Angle will have been broken on day closing price basis.

To the Gold:

Well, what is to be said about it apart from the fact that there are no sellers any more and obviously there are only dip buyers left.