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Last week commodities moved higher as investors started buying into the recent pullback in prices. This is a healthy sign for the overall market. This is a quick update for gold, silver, oil and natural gas short term traders.

GLD Gold ETF Trading Chart

This is just an update on using the internal forces of the market to time new positions. In this short video we look at the internal workings of the S&P 500 index.

We will be using in this example the free technical tools to help time a position. The number one tool we will be using is the Fibonacci retracement tool which just comes in beautifully in this example.

In the past, commodity trading was only available to trader with large accounts, high risk tolerance and a good understanding of how the futures market works.

Gold has provided two excellent trades for us this year; both had less than 3% downside risk. With any luck we will have another trade soon. Gold has been forming a large reverse head and shoulder pattern since early March and currently trying to form the right shoulder.

With the S&P 500 falling to a fresh two-week low, the big question is this a correction, or the start of a major trend on the downside?

I have just finished a short video that details many of the key concerns that we have for this market. If you have not seen our videos before you may enjoy this one. This video does not require a plug-in.

Over the last couple of weeks there have been several divergences showing up.  Annual new highs new lows ($NYHL) made lower highs as well NYSE McClellan Oscillator  made lower highs as Spy made higher highs.   The NYSE McClellan Summation index did not confirm the breakout of J

We continued to see precious metals under pressure last week. The US dollar moved firmly higher on Friday which sent gold & silver plummeting lower. Oil continued to drift to new multi month highs while natural gas moved sideways.

The Gold, Silver, Oil & Nat Gas Report

With so much happening in the market, emotions flying high and from being blinded by fear and greed many investors are wondering What do I do now?

Below is an interesting chart.  The blue chart inside the SPX chart is the ratio of the Nasdaq volume compared to the NYSE volume.  When Nasdaq volume surges compared to NYSE volume then a pull back is anticipated in the S&P.   Over the last couple of days the Nasdaq Volume compared to NYSE Volume surged to a new three year high.

The charts below quickly give you a visual as to where each commodity is trading in relation to intermediate and short term support and resistance levels, chart patterns and trend lines.

Quick Over View

The technical outlook on the silver market does not look all that strong when looking from a distance.  I like to keep eye on the longer term trend lines for possible support and resistance levels which are easily missed if you only follow the daily charts.

The market has staged a very impressive rally since the March 6th low. At that time the S&P bottomed at 666 and is now around 900. This massive rally has occurred in just two and a half months. Some talking heads in the media are now saying that this is the start of the next bull market. Many call a move of 20% or more a bull market and perhaps by that definition they are correct.

In our view the Elliott wave count for the NDX is relative clear.  Notice that the smaller Elliott Waves break down into five count patterns and suggests the larger waves should also.  It appears to us that NDX is forming the 4th wave now and once complete then Wave 5 down should start and most lik

Gold, Silver and Oil breaks out to new multi week highs and shows signs of more strength to come. The charts below show both weekly and daily trading analysis pointing to higher prices for these commodities.

Weekly Gold ETF Trading

Summary

All four ETFs are on buy signals.  Two of them gave us set ups this week, and we will wait for set ups on the other two.