Market Commentary 26Feb12

8/3/2019 Market Commentary 26Feb12

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Dollar Index (DXY) ~ Daily Continuation

Its difficult to make much of the Dollar Index on the longer term scales, but in the shorter term this is a market that looks headed lower.An -a- = -c- target would be 76.56. DXY bears should consider 79.38 as stop for any short positions. All the waves have a correctivelook off the lows; so, we may be witnessing a triangle development of some kind. Anticipate sideways/lower price action next severaldays.

Andys Technical Commentary__________________________________________________________________________________________________

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- a -

- b -

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Gold ~ Weekly Continuation

Whenever a market meanders through a well-defined trendline as if it didnt evenexist, its typically a sign of a triangle development. Thats what Gold did in thecircled area. So, were going to stick with this idea--if its a triangle, it will be either aneutral triangle that ends near the a-wave bottom or it will be an expanding trianglewhere the d-wave high will exceed the b-wave peak and the e-wave will break belowthe c-wave low. An expanding triangle would be quite the whipsaw.


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Gold ~ Daily Continuation

In the meantime the trading philosophy has been to stay with the trend as long as possible but to be continually raising thestop loss levels for bulls/longs. That concept has worked well as the market has continually held minimum support levelsfor several weeks now. The 23.6% retrace has been a very good level to use as first level support and it should continue to be

used. A break below $1,724 should stop out long positions. For those looking for a tighter stop,please consider $1,761, the previous shorter term peak.


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1,761


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S&P 500 ~ Current Rally

The current corrective move yielding no more than a 25% correction has lasted 41 trading days. It this is going to look likeall the other such patterns, then it should have a several days longer to run.

41 Trading Days;

Max Retrace = 25%COPIED from 2/20/2012


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S&P 500 ~ Current Rally with Weekly Support

Last week the case was made that the current rally had at least several more days to run based on previous similar wavesthat have occurred since the March 09 lows. This market continued to grind slowly higher last week. This isnow an extremely well defined trend channel that every arm chair technician is watching. A break of thetrendline lower should trigger strong selling. Consequently, bulls should continue to raise their

stop-loss levels on long positions.

Consider using 1340 and 1326 for first and second

levels of support. 1326 would be a 25% retrace of the

entire last move--something this market has failed toviolate yet.

This would be support area on a breakdown.


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DISCLAIMER WARNING DISCLAIMER WARNING DISCLAIMER

This report should not be interpreted as investment advice of any kind. Thisreport is technical commentary only. The author is NOT representing himselfas a CTA or CFA or Investment/Trading Advisor of any kind. This merelyreflects the authors interpretation of technical analysis. The author may ormay not trade in the markets discussed. The author may hold positionsopposite of what may by inferred by this report. The information contained in

this commentary is taken from sources the author believes to be reliable, butit is not guaranteed by the author as to the accuracy or completeness thereofand is sent to you for information purposes only. Commodity trading involvesrisk and is not for everyone.

Here is what the Commodity Futures Trading Commission (CFTC) has saidabout futures trading: Trading commodity futures and options is not foreveryone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Beforeyou invest any money in futures or options contracts, you should consider

your financial experience, goals and financial resources, and know how muchyou can afford to lose above and beyond your initial payment to a broker. Youshould understand commodity futures and options contracts and yourobligations in entering into those contracts. You should understand yourexposure to risk and other aspects of trading by thoroughly reviewing the riskdisclosure documents your broker is required to give you.

Wave Symbology

"I" or "A" = Grand SupercycleI or A = Supercycleor = Cycle-I- or -A- = Primary(I) or (A) = Intermediate"1 or "a" = Minor1 or a = Minute-1- or -a- = Minuette(1) or (a) = Sub-minuette[1] or [a] = Micro[.1] or [.a] = Sub-Micro

PLEASENOTETHAT THERE ISADDITIONAL INTRA-WEEKAND INTRA-

DAYDISCUSSION ON TECHNICALANALYSISAND TRADINGAT

TRADERS-ANONYMOUS.BLOGSPOT.COM

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Market Commentary 26Feb12