trading pattern on the S&P 500 index suggests strongly that the market could be in an early stage of establishing a near-term high and that short-term condition is ripe for some short of pullback consolidation. However, as long as the S&P holds above the February trend-line, the coming correction might be just another blip in the multi-month rally, which will help setup a much more potent buying opportunity

“ETFs Trading Map” for January 25, 2010: “…Commodities ETFs: last week we’ve said that: “GLD continues basing side way just below resistance at 112.67, or the white line in the chart. The overall trend remains bearish, so we could see a retest of support at the bottom of its short-term trading range.” As anticipated, GLD rolled over and is now testing support at the bottom of its short-term trading range. Although the overall trend remains bearish, it’s now nearly oversold following recent so…” Subscribers, please login to read more.

“ETFs Trading Map” for December 21, 2009: “…Commodities ETFs: last week we said that: “GLD pulled back to key support level that has been successful in repelling price action over the past couple of months. With that said, if history is any guidance, then we could see at least an attempt to rally this week. Buyers however, should be aware that the short-term trend had turned bearish following recent decline, so a general cautious strategy should be applied.” As anticipated, GLD rebounded nicely last Wednesday. The rally however, ran out of steam and the yellow metal stumbled nearly 4% the next day. It seemed to us that…” Subscribers, please login to read more.

based upon recent trading action, an important short-term low had been established and the market is in an early stage of a new upleg that points to a retest of the yearly high, or the low 1100s on the S&P 500 index.

based upon recent trading action, the market is getting tire and further short-term pullback consolidation is possible. Any corrections however, would tend to be relatively shallow because demand for stocks remains strong. In the longer term, the path with least resistance is up but it’s going to be a lot choppier.