GOLD Support and Resistance

• Weekly chart shows bulls struggling to cross 1800 levels. Bulls need a weekly close above this level for a bigger breakout.
• For bears a close below 20 SMA would hint weakness. Daily close below 1755 should start a bigger correction

Elliott Wave Update ~ 10 October 2012

S&P 500 Analysis after closing bell

• SPX 4 Hour chart shows price Near support zone of 1426 - 1430
• Daily chart shows price approaching the up trend line
• Price is also falling towards the support zone of daily chart which is between 1422 - 1426. So this zone of 1422 - 1430 may act as strong support for bulls of SPX.

 Wednesday, October 10, 2012

We've laid out the larger counts. DJIA would probably count best as a double primary zigzag. Triple negative weekly divergence shows loss of momentum:

We still like the wedge count also as shown on the SPX below. If this is a bearish rising wedge, a collapse in prices should occur. That is the outcome of ending diagonal triangles.

 Local candle action shows prices again trying to hold 1430 support and now well below the upper wedgeline again. Yet we still need a solid "lower low" to make the bear case stand out.

One can argue that wave 5 was truncated in a very sneaky expanding diagonal triangle. If this is true, it displays weakness in the wave pattern. Hence the fairly quick and steady drop in prices so far from the recent 1370 high.

The ending diagonal expanding triangle would count as this: