S&P500 May Have Found A Top; While Gold Trades Into A Temporary Correction

Grega Horvat

S&P500 recently breached the lower channel line, which now suggest that a top has been found at 2446 for the previous five wave rally and that a minimum three wave reversal is in action. We now see wave A/1 in play, which can extend even lower, probably to around 2403 level where bulls can take over for a temporary recovery into wave B/2.

S&P 500 4 Hour Chart

S&P 500 4 Hour Chart

Gold turned sharply lower then past week from 1295; clearly in impulsive fashion so it appears that metal is headed into much deeper levels within a correction of a higher degree. On the updated chart we are looking at A)-B)-C) decline in progress down to 1258 area, or possibly even back to 1245 before market may look for a new bounce; most-likely at the end of the month.

S&P 500 4 Hour Chart

Source: www.ew-forecast.com