The Dow is now testing key technical support at the 17624 level and breaking this level warns that a correction becomes possible. We have two very important Weekly Bearish Reversals at 17434 and 17120 level. A weekly closing beneath the 17120 level will signal a sharp sell-off of about 1,000 points or down to the 15400 area. Gold has finally exceeded the March high and silver reach 1802. How they respond now to the 2015 high of 1307 and 1850 will be important to determine if we have an extension of this chaos in all markets or are we just pushing everything to the maximum.
May/June has been a key target for this year on our timing models followed by August. Now, will we see as a low or a high on the first target? Key monthly support lies at 17579 and we are trading right now at 17693 at this moment. We have a Weekly Bearish at 17434. If we close beneath 17579 today, we should expect a correction that will increase the odds that the next turning point should be a low with a rally then into August. Quarterly timing models have highlighted the 2nd quarter here in 2016 for a Direction Change so that will be for the June closing.
(See private blog for metals numbers)
