The General Market fell nearly 8% last week, as a heavy dose of Downside Volume finally hit stocks, further intensifying our bearish Downside Volume numbers. In panic selling, SPY broke strong Weekly Support (273.36), bouncing Friday to close 275.96. A bounce is now likely over the next 3 weeks for SPY to reach a maximum comeback 286.63, with an important cycle high due on, or around, Nov. 3. With our studies (Volume, Momentum, Leadership & Breadth) now solidly bearish, we expect the downturn to continue, once the rally terminates.
The metal rallied $14 closing 1217.50, but failing the 1220 level on Friday. Spot needs to clear 1220 for a move to 1245 and 1310. The star for the PM’s were the gold shares (XAU) rallying 6%, confirmed by a 9 month high in volume. The key level XAU needs to clear falls to 83.81, with target 102.62 Fib resistance.
The Dollar (UUP) hit Fib resistance 25.53 (actual high 25.54) then fell 1%, before closing Friday 25.33, Strong Fib resistance 26.04. Fib support 24.68 – 24.32 (strong).