SPX and Gold Updates

Last update called attention to the fact that SPX had reached the upper boundary of its near-term red channel and mentioned that we might have three waves up off the 3808 low.  SPX dropped lower from there, and has now formed a passable impulse down, potentially for all or part of wave i down.  The key level for bears to hold for that potential first wave down to remain on the table is 3965.

Big picture, nothing has changed, and blue (3) remains the leader unless/until the market tells us otherwise.

Finally, a quick update of the gold chart, which we haven't looked at in quite some time.  Gold has formed three waves down (the inverse implication of the near-term SPX chart -- three waves can mark a completed countertrend correction):

In conclusion, not much to add to the past few updates, except a reminder that if blue (3) is indeed underway, this market should start to get ugly over the next few weeks.  Trade safe.