It has been a remarkable six months for the CDNX which, after today’s close of 2175, is up 62% since the early July low that we correctly called at 1343. Fresh discoveries, new all-time highs in Gold and firmer commodity prices across the board are helping fuel this bull market that the “masses” haven’t yet discovered. When they do, look out. We’ve already presented a strong case for a potential new all-time high in the CDNX (3400+) within the next 12 months. January and February could be extremely robust given the chart patterns we’re seeing, so fasten your seat belts – it appears we’re in for a wild ride.
The CDNX is an astonishingly accurate leading indicator, even for the economy as a whole. With regard to precious metals, the current strength of the CDNX suggests the softness in Gold at the moment is merely temporary – both Gold and silver are likely to explode to the upside early in the New Year based on a close examination of the CDNX chart.
The CDNX is currently in the process of working through a relatively weak resistance band that John identified a while back between 2150 and 2250. Once 2250 has been breached, which could very easily happen as early as next week, the next significant resistance level is 2350. Once that is overcome, this market is likely to accelerate rapidly.
Below is a 10-year monthly CDNX chart from John that also includes a comparison with Gold. CDNX buying pressure, as revealed by the Chaikin Money Flow (CMF) indicator, is steadily increasing – very bullish – and this market is far from being overbought based on historical RSI readings. The CDNX has been running hard for the past six months and it’s not about to stop anytime soon.
