Charts SYSTEMS

[gdl]

Skeptical all the way, but the channel it is in along with the fundamentals, such as earnings and employment, suggest we have a lot further to go before any sizeable drop. The SPX should hit 1820 before any sort of correction is seen. Seasonality suggests we have another 3 weeks before any decent reversal is seen. Accordingly I would not be surprised to see 1900 on the SPX before this year is out.

Since the last few weeks is playing out the way I envisioned it, I see no reason to change my view. Gold, like I stated earlier, is a counter intuitive measure on the direction of this market. It is clearly not near the bottom and should hit it within a month or so, based on the charts. That would coincide very nicely with an SPX of 1900.

There is nothing right now that should shake this market up. Retail figures were once again "as expected", and that will be the major driving force for this market till year end.