Triangle Or Flat?

Is the correction over? It depends on whether the correction was a triangle or is an expanded flat in progress. While today's action goes along way toward eliminating the flat, several points still seem to lean toward the flat interpretation: 1) Today's volume was average to below average for most indexes, not what you expect or want to see on a breakout, 2) The extent of the rally is still within the range for an expanded flat, 3) The SP500 closed just below resistance at its 200dema today, while the Dow is closing in on its 200dema and a trendline drawn along the April/May tops, and 4) The financials stalled out today at the underside of the broken uptrendline from the March lows.

If it was a triangle, for those of use who did not jump on board the index rally, we should see a pullback to at least the May highs, which could provide and entry point before the final leg up into July. If it is an expanded flat in progress, we will have an excellent entry just below the May lows. Time will tell which one it is, but I do think it is premature to call it one way or the other.

Today, I exited the DGP as gold stalled at its upper trendline. I took a new position in VRSN, which did not close that well. I am looking for a breakout in SNDK. Still long in ASIA, SOHU, TNDM, and the DXO.

If gold breaks down here, it could go to 850 or all the way to 600. If it breaks out above 1000 and holds, I will be looking to go long for a run up to 1400 using the DGP.