Technical Analysis Of Gold, Silver, S&P500 Index And The US Dollar

December 28, 2014

It appears that an extremely rare event occurred when the Dollar Index bottomed and began a bull move, while gold gained approximately $1,000. Something at least equally as rare must have occurred at the same time to cause this result.

DOLLAR INDEX QUARTERLY

dollar index quarterly

GOLD QUARTERLY

The correction that gold has undergone since the high at $1,033.90 is the most bullish correction possible. It is a very rare correction. It is called a running flat. However, I repeat, something equally as rare most have occurred at the same time in order to cause this extremely rare running flat correction to take place. 

“Apparently in this case, the forces in the direction of the larger trend are so powerful that the pattern becomes skewed in that direction.” E. W. P. 

RUNNING FLAT CORRECTION

GOLD QUARTERLY

Ah yes, right on schedule the mighty Federal Reserve, in order to prevent our banking system from totally collapsing, began the rarest of rare, first time ever method of rescuing our insolvent banks. This rarity goes by the name of Quantitative Easing, better known as the Q. E.’s. Will there be a rare price to pay for having initiated the Q.E.’s? Will the rarity of the Q.E.’s result in an equally or worse rarity? The equally rare running flat correction in gold and silver indicates that the answer is absolutely yes!

GOLD QUARTERLY

S & P 500 QUARTERLY

“… the forces in the direction of the larger trend are so powerful …”

SILVER QUARTERLY

The Dollar Index began a bear market correction shortly after silver and gold began a running flat bull market correction. The correction in gold and silver appears to be complete. The bear market correction in the Dollar Index should be over fairly soon.

DOLLAR INDEX QUARTERLY

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Disclaimer: The contents of this letter represent the opinions of Ronald L. Rosen. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Ronald L. Rosen is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Ronald L. Rosen cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions.

 

The purity of gold is measured in carat weight.