Friday, April 12, 2013

Gold crashing, market holding ST support

I posted Sunday that if gold failed to rally hard and fast above 1650 it was in big trouble. Today the shiny metal is down 4% and has broken long term support. Key inflection points create big moves. Gold could attempt to test the underbelly of the broken channel line early next week but I would not count on it. Price could continue straight down to 1350-1380 before a break in the selling.

Tuesday, I posted some intraday charts of the SPX showing a short term bullish set up that I failed to see until it was too late. This bullish signal is notoriously powerful and proved again how fast it can move the market.
The move fulfilled it's maximum profit expectancy and has pulled back this morning and bounced at very ST support. I suspect the market will hold this area to finish the week and make an attempt at a double top or slightly higher high early next week.

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