Stocks Forming Top?, Gold Met Target Price - 11/18 /09

Stocks

With the move higher this week above last weeks high, stocks now appear to be forming a topping formation with a wave five completion possible between this Friday and Tuesday of next week. The 1121.05 area mentioned previously looks like the best target price for the high on the S&P500. The Dow and S&P500 are both in the area of a 50% retracement of the move down into the 2009 crash low. Because of that, and the possible count of five waves up from the March/2009 low, the correction could be the largest correction since the March bottom.

Gold/GLD

GLD met the 112.75 target price today. It is possible to count five waves up from the late October low, but with stocks possibly not topping until next Tuesday, it may work its way higher along with stocks, possibly even as high as around 117.