Stocks and Gold Update - 11/11/09

Gold/GLD

On Monday GLD hit 108.59, which verified the current wave is part of a larger wave three instead of a wave five about to complete, as discussed in Sunday's post. That is bullish with the next price target being around 112.75. Todays close of 109.61 is already more than one point above the 108.59 level with more then three points to go to reach the next target.

As for wave structure, it looks like it is in wave five of the move up from the 10/28 low. Based on that count and cycles analysis, the next price target could be reached sometime between Friday and early next week.

Stocks

Stocks are moving higher with gold and may top in the same time frame. Today stocks went past the 1093 resistance and also the October high indicating the next swing cycle on 11/14 is inverting into a high instead of a low. The wave structure is not as clear as gold but may now be in wave four up from the 11/2 low, to be followed by the final wave five. The 1.27 fibonacci extension of 1121.05 appears to be the most likely price target for wave five.

Also, since the October high was taken out, that may change the preferred wave count. That analysis will be provided in the next post.