Thursday January 2nd

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SPX – The General Markets broke down, back tested the wedge, and then sold off at the end of December. I have to expect the selling to continue in January as the timing for the dcl and an ICL have arrived. I’m not saying that there won’t be ‘up days’, but we should see a sell off that may be similar to the ICL drop in July.

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The SOXX slowly sold off earlier this week too. Note: The general markets are not oversold.

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As you can see, Gold, Silver, and The USD are all rising together this morning before 6 a.m. ET. .

GOLD does have a low at day 24 and it has chopped sideways since then. Gold appeared to put in an ICL too, so why isn’t it blasting higher? It has been choppy in the past (yellow box) and may just be forming a triangle here. It is possible that when the General Markets sell off more convincingly, the Precious Metals and Bitcoin may become safe haven buys. This is GOLD at 5 a.m. Today.

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SILVER from Tuesdays report–    The day 24 low was not confirmed with a price break of the 10sma (or 8 ema), so a lower low could give us the dcl.

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SILVER DAY 31? – The daily cycles are clear except for the possibility that we have a dcl in place (or not). Silver did NOT close above the 10sma on that bounce, so it is not a confirmed dcl. We could make a new low.

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GDX was actually up on Tuesday after making a new low. The 10 sma is at $34.34 and we have MACD divergence at these lows.

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So we’ll see how the first day of trading in 2025 goes, but the set ups look like we should soon see more selling in the general markets and that could lead to an excellent entry in many of the bullish stocks that we’ve been following. That selling may also lead to Gold and the Miners moving higher, and Bitcoin too. I’ll discuss Bitcoin below, enjoy your Thursday trading!

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~ALEX

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BITCOIN On Tuesday I cycle counts and then I used this chart and said: Bitcoin has formed a bullish descending wedge and really it does look like we’d be at the end of the apex, so breaking above that downtrend line should be a bullish development. We really should be close to putting in the next low, if we aren’t there already.

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BITCOIN has a day 56 low and it broke the downtrend, so I would say that the lows are in on day 56 and Bitcoin should be ready to push higher (unless it gets choppy). Now we’ll see if the crypto stocks follow, because they have been beaten down.