One week ago today exactly, we suggested that another bear market rally looked to be shaping up in the stock market, noting that massive intraday volatility added to the case that a bottom was in formation. We showed a chart of the SPY as a proxy; that chart is updated below. Note the open gap right at the upper edge of the clear downtrend line, which still intersects the 200-day moving average.
In this trader's opinion, the question might actually be whether or not stocks break out above the downtrend line this time, with a FED having incepted the idea of a slowdown in its rate hike path via an EXTREMELY well-timed (from a technical perspective) pre-market Wall Street Journal "leak"….
Early last week, and the week before, we remarked that we thought if ever there was an opportune moment for the "PPT" to act, the period before mid-term elections as stocks look poised to crash seemed as good a time as any.
The battle for $1650 rages on in gold. While the bulls successfully defended last Friday, the price has since meandered back down. Bulls want to see a weekly close this week over $1650, especially if the stock market's upward momentum picks up. As we noted last week as well, the target for gold bulls to confirm any sort of sustained momentum in the short term, is a close over the $1685 level on a weekly basis; the chart below should illustrate the importance of that level.
Thanks and have a great day,
