Indice and Metal charts…and some thoughts on them.
Posted by MC on May 26, 2009
The Nasdaq may be leading paper markets higher.?. It’s already back into that bearish channel while other indices are still stuck in range. I’d be interested to see a test of that resistance turned support and the channel to play out to the upside. Keep in mind it’s a BEARISH channel so as the market moves the slope degrades and damages profit potential from longs. Don’t be a full on bull unless and until that channel gives way to a new upward slope. Cut longs at obvious resistance and reduce exposure.
Notice how the 3 indices are stuck at the 38.2% fib level. (Well on my charts it shows the 61.8% because I draw them backwards to get my extensions projected in the direction of the current trend.) All this hype and hooplah and we’ve only regained 38.2% of the violent wave down. Amazing how the news can twist things to make people feel the way they want them to feel.
ES and YM both have room to go before that 50ma. That ma is going to match up with the bigger downward channels lower trendline soon.
Silver and gold are both looking strong. You can see Gold holding and having the market excess defended pretty well here. A test of the 100% if not the 121% fib is pretty likely IMO…especially given the USD woes with Russia and what not.
If silver can break this trendline it has a great upside potential. Metals may be making some headlines soon.
