Time To Load Up The Truck With Gold, Silver, And E-Mini S&P 500 For Christmas Rally
Patrick MontesDeOca of Equity Management Academy - InsideFutures.com - Fri Dec 07, 11:15AM CST

This is the VC PMI Early Bird Daily Special Update for December 6, 2018.

E-Mini S&P

As I write this, the E-mini S&P is trading last at 2,653.50 down 48.25. The average price for today is 2,729, and the market has come down into the area of our proprietary artificial intelligence algorithm Variable Changing Price Momentum Indicator (VC PMI) buy 1 (B1) level of 2658. The buy 2 (B2) level is at 2,634. These are the B1 and B2 levels of demand for the daily numbers.

A close above 2,668 would trigger the buy signal if activated, or if we come down to 2,634 and test that number, it would activate the buy signal if the closes above it. If the buy signals are activated, the first target would be 2,668. A close above 2,668 would activate 2,727. This is on the daily chart. The extreme above the mean is 2,663 at the sell 1 (S1) level, while the sell 2 (S2) level is at 2,824.

The market has come down precipitously from that 2,804 target we had last week, Equity Management Academy founder and CEO Patrick MontesDeOca said, and we are almost at the extreme below the mean, which is a very good indication that prices or the volatility is beginning to increase. Once we get out of either side of this trading range we have been in, we are going to see much more volatility.

The levels of the B1 and B2 have been tested several times from October 29 to November 23, and as we look at this test today, Patrick and I agree that we could be in the completion of a triple bottom confirmation as we move into the next cycle period. This cycle should be completed by December 6, in the same way the VC PMI analysis told us about a potential top coming in here during the early part of December.

We seem to be accomplishing this swing down correction very rapidly and it leads me, MontesDeOca said, by looking at the weekly reports that we are in a very, very important harmonic level of support.

The B1 level on the weekly VC PMI analysis is at 2671, while 2,584 is the B2 level.

Im not so sure that for the time being we are going to be able to come down to 2,584, as much as reverting, MontesDeOca said, which is what I am looking for from this area of demand on the B1 and B2 on the daily above 2,668.

Meanwhile, the monthly VC PMI analysis has kicked in a buy signal from B1 at 2,650. As I write this, the market is trading right around that price.

I am beginning to see all of the trends aligning themselves harmonically around this price level, MontesDeOca said, which is what we look for in order to confirm that the previous pattern has been completed.

That would be confirmed for the daily, weekly and monthly VC PMI analyses by closes above 2,650, above 2,668, and above 2,571, which would confirm that all three trends have bottomed - an excellent time to go long.

For more on silver and the VC PMI, check outhttps://seekingalpha.com/article/4227036-time-load-truck-gold-silver-e-mini-s-and-p-500-christmas-rally