Miners, Gold, Silver Near Top…But Stock Market Could Go Either Way

The precious metals complex looks toppy here…and a pull-back is warranted into the end of July (see chart below for added information).

The stock market is in a critical zone.  The 4 TD low is overdue by 1 TD and the 8 TD low is due on July 8^th.  The 16 TD low is due on July 11.  The bullish scenario sees a move back to near 2082 SPX on July 5^th a rally to 2126 on July 6^th and then a pull back to 2070 by July 8^th.  BUT, IF July 8^th holds near the July 5^th lows and cracks through it on July 11 to near 1980 SPX, all bets are off for the upside. Either way, we should see an important top on July 6^th.

Right now, the chart read looks like a bullish one to me with a target of 2288/89 by September 2.  I would be willing to change my mind IF Mr. Market does not do as I expect and the alternate scenario comes in to play (chart below).

Brad Gudgeon, editor and author of the BluStar Market Timer, is a market veteran of over 30 years. The subscription website is www.blustarmarkettimer.info

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