Wednesday, December 14, 2011

Really frustrating market, no trend at all, you cannot bet with confidence neither on the upside nor on the downside.  Is the 3 days in the row on the downside, indeed but yesterday morning SPX was around 1250. This is an excellent market for the day traders, for the rest of us, not so good.

Anyway, the daily DMI has turned negative, once again and as expected the weekly DMI remains on red as well. Looking at both daily and weekly DMI I can see some support in the 1217-1220 area. Market may move up a little bit from here but don't bet too muc on it. The major support, on weekly chart is around 1170. That's the level we should keep a close eye on. On intermediate time frame the uptrend line is around 1180 so this area, 1170-1180 is were the market will decide if it wants to go bearish or bullish on long term.

Gold has another bad day. The weekly DMI just turned negative for the first time in 3 years! Also for the first time in 3 years gold moved bellow SMA 200. Now the major support remains 152 on GLD (translated as 1560 on gold). Bellow this level things are going to get really ugly.

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