Nov 20, 2008 Opening Comments

Yesterday I warned that the SPX could fall as low as 795. We closed at 806 down 53 points. I also warned that GDX could tag the 18.30's after early strength. We closed at 18.60 after tagging 21.00 early in the day.

The Equality of Waves Principle has us supporting 801 SPX today. Today is day 5 in the 4 day cycle suggesting a potential bottom today and a strong rally on the horizon today, Friday and even into early Monday. The outside chance for a top would be Nov 28, but the 13 week cycle top +/- 2 weeks hints we may see that expected top no later than Monday.

Targets are about 1005 SPX for this rally based on the EofWP and the expected tagging of the 50 day moving average. This is a sell the rally move coming as I see more down side into around Dec 23.

Gold stocks are holding up better than the stock market as a whole and I see a nice rally back to take out the Nov 5th top. Keep in mind that the rally I see in gold stocks looks to be a 'b' wave sucker's rally, with wave 'c' yet to come on the down side in this irregular flat bullish flag I see developing.

Yes, I see higher prices into the third week of December for gold stocks, but we have to finish out this sideways period first. Today sees support near 18.51 GDX and a strong rally is coming.