Nothing major today as the indices shed around .5% each. Volume was lower than Friday and overall cash still remains as the best place to be.
In a normal market, the gap range from 3/10/11 would have been filled already so it is interesting to see that this has not yet taken place. This means sell pressure is continuing to come on strong. Because of this, any 1-2% rebound at this point would make a for a decent short entry unless it comes coupled with strong volume.
Gold and Silver charts are included below. Silver had a very nice bullish engulfment last Friday; this occurs when an equity gaps down below its previous day’s close, then rallies to finish above the previous day’s highs on higher than average volume. Thus, an “engulfment” of the previous day. These typically lead to higher prices in the coming weeks which, given the run Silver has already enjoyed the last few weeks, is hard to fathom.
Keep it frosty.
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
