Daily chart for S&P
Daily chart for Dow
Daily chart for NASDAQ
I wasn’t able to blog about the market last week as my
in-laws were visiting. We did a road trip from London to Newtonmore in
Scotland. We saw the British Dance Open in Blackpool and visited St Andrew’s
Old Golf Course in Scotland. Also went to numerous sightseeing spots along the
way. This Thursday, I’ll be going to Rekjavik, the Golden Circle Route and will
be feasting on the delicious seafood in Iceland.
Anyway back to the markets….I saw an excellent short entry
for the markets on Monday that I took just before I left on the road trip. The
markets dropped like a brick over the week and we entered oversold conditions
on Friday. We might bounce as far up as 1,345 over the next few days before
continuing down to 1,150 for S&P. It is still a downtrend and any rallies
will be better entries for shorting.
Recently there’s speculation that Cyprus may be seeking a
bailout from the EU. This and a few other really pessimistic news coming from
Europe should be enough to keep the market from rallying much.
Daily chart for Gold
Quote from my market analysis 2 weeks ago:
“We had gold bounce off support at 1,546 last Thursday. I
believe we should see gold test this support again within a week or two before
beginning a new rally.“
Gold tested support over the following 2 weeks before making
a huge one day rally spike last Friday. This is the beginning of the next rally
for gold. I was unable to enter a long position as I was driving somewhere in between
the Grampian Mountains gazing at the breathtaking views of the loch and glens
of Scotland.
We should see gold rally over the next few days and then
come back down to test channel support. That will be a good and safer entry for
the next leg up.
