Potential Three Day T

The chart above is a 15-min bar chart of the S&P emini futures over the last week. I have drawn a possible T construction whose right arm spans 3 days.

Two studies shown below the chart are of OBV and MFI. I am treating OBV as a proxy for the cash build up period. It has yet to break above the descending trendline but may do so.

To confirm this T, I am applying the Theorem I introduced last week. If the T is correctly constructed and viable, a peak in MFI should occur around the midpoint of the right arm of this 3 day T. I have marked this midpoint with a pink arrow. I am also taking this opportunity to test my Theorem in real time.

S&P 500 Intraday Bias, 10:00 AM

Positive

Gold Correction Update II

In the chart above, GLD, the ETF for gold, briefly penetrated its trend line only to fall back below. I had given my reasons for predicting this behavior here. This brief penetration often happens in the terminal stages of an uptrend. This price structure therefore suggests that gold will correct.

As the anticipated correction develops, more clues will be given towards the area in which the correction will end. Tentatively, one possible target is the 50 week moving average, which is about 130 on GLD.

S&P 500 Intraday Bias, 10:00 AM

Neutral

S&P 500 Intraday Bias, 10:10 AM

Negative but oversold

The S&P has already been down today as much as 12 points. My analysis suggests that the market will soon stage a sizable rally before this correction continues.

S&P 500 Intraday Bias,10:05 AM

Negative