>In the last issue we indicated that the markets might be facing a turn since a five week decline had passed. But by falling short of certain marks on daily basis (1294 in the S&P 500 or 12093 in the Dow Jones, respectively) an eight week decline with a target of 1250 in the S&P 500 and 11800 in the Dow should be waiting.

The weekly 8 Candle GUNNER24 Up of the S&P 500 is showing that for next week the touch of an extremely important price and time magnet is on the agenda which should ring in a significant upwards turn. A weekly closing price below this magnet would point to a 13 week decline. But at the moment we’re working on the assumption that after being touched the magnet a visible turn should happen which we’ll buy then.

src="http://www.gunner24.com/uploads/RTEmagicC_s_p500_weekly_8candle_G24up_19.jpg.jpg" border="0" height="900" width="915" />

It’s been going downwards for 7 weeks. From my point of view, the fact that not any white candle is visible during the decline shows its corrective character. The S&P 500 might still go a little bit lower producing a marginal new low in the 1250 environment or confirming the existing low (1258) before a contact of the market with the support Gann Angle (it will proceed at 1258 next week) will be able to ring in the rebound.

The odds are extremely in favor of a significant rebound to happen here in the environment of the support Gann Angle. A reversal candle would be the first sign for a rebound. Correspondingly, in case of a reversal candle we’ll go long towards the week closing. In case of the 1258 low or if next week even a lower low is being generated SL will be at that new lower low. Target is the 5th double arc being the Main Target for the entire move. The first important resistance where the first stop of the rebound on daily basis will have to be expected is lying at 1298.

As well as in the S&P 500, the actual daily 3 Candle GUNNER24 Up at the Dow Jones is indicating that the low of this correction might have been reached already. >>No great things have happened since we analyzed gold for the last time. After I presented the weekly 13 Candle GUNNER24 Up on 06/05 gold has lost as little as 3$.

src="http://www.gunner24.com/uploads/RTEmagicC_gold_weekly_13candle_G24_up_01.jpg.jpg" border="0" height="671" width="640" />

Gold has stayed in its narrowly defined weekly Gann Angle corridor. For the second time it closed within the 2nd double arc last week newly confirming the next main target at 1666. >>>E-mail trader for pure, quick short-term gold and silver trading.