Stock Market and Gold Exhaust Upwards
Classic exhaustion. Futures are down, market is very overbought, and you’ve got the dollar hanging in there and Yen is rallying. Fed says financial system can withstand CIT bankruptcy on Friday, according to Bloomberg. And emerging markets are sucking wind – China, India, and other frontier speculations. Silver popped but doesn’t look like it can rally much further. Divergences in the VIX and summer volume that indicates everyone is on vacation except the trading programs.
I think thechartpatterntrader.blogspot.com has this short term market nailed. He’s expecting to go short, and we’re looking forward to seeing real fear before we get our final up move late summer. Its a bearish gartley patternwith maybe a dark cloud cover reversal pattern tomorrow and we never look back until 811 on July 28. If the S&P500 breaks above 943.84, the bearish call is wrong. Enjoy watching the dollar gap up as Europe catches a glimpse of its brown weeds and gold bugs bug out. Please read our disclaimer as nothing contained anywhere on this site constitutes any investing advice or recommendation. Any purchases or sales of securities are solely at the discretion of the reader.