S&P 500 going down farther? Gold, Bitcoin, higher still?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Early last week, I suggested the importance of being vigilant on the long side of a stock trade; prices were creeping along the trendline, which was a negative signal for bulls.
I suggested: "Let the trendline be your guide." When prices broke below, they continued to fall. The question is, how much lower? My base case for the S&P now is it will go down to test the 200-week moving average as the price stays oversold, a similar scenario to that of January 2022.
A look at the weekly gold chart shows that momentum still has room to run higher. Will spot gold test its all-time high before any significant pullback occurs? Again, what I do know is that technicals, as well as fundamentals, are aligning for the long-term stackers. I don't comment on geopolitics, but in his live podcast over the weekend, Peter Schiff dropped this gem: "This isn't a black swan, this isn't a white swan, this a pigeon! Pigeons are everywhere."
Two weeks ago, I suggested that traders could use the 200-week moving average as a marker to get into Bitcoin on the long side. Bitcoin did, in fact, break above and follow through. Traders can decide if they've pocketed enough on this swing, with the most obvious resistance around 31k. I will continue to show the below Bitcoin chart. Above 31k and the bulls have a chance at the dashed line around 38.5k – 39k; and like in gold, they momentum on their side.
Thanks, and have a nice week,