Very important day tomorrow for the intermediate time frame but not so much for bull vs. bear market. SPX stopped exactly at SMa 120 on hourly chart. A push above this level and a confirmation from EMA 25 crossing EMA 50 could signal a continuation of the current rally started yesterday.
Also notice that DMI has turned positive on two hours chart fotr the first time since the beginning of the plunge, a month ago. DMI on two hours chart is a good compromise between DMI on hourly chart that is pretty much meaningless and the one on daily chart that is quite slow and is not that useful in terms of generating good buy/sell signals. DMI on two hours chart gives many more whip-saws than EMA 25 crossing EMA 50 on hourly chart but is good to have a look at it from time to time.
Overall the momentum remains bearish with market bellow SMA 75 and EMA 20 almost touching EMA 40 on weekly chart. Most likely the current rally is going to be another fake rally.
Gold suffered a big plunge today, again not really surprising keeping in mind the panic buying that push the price of gold above the price of platinum. However, overall gold is very well positioned and I expect higher highs (over $2,000/oz.). The weakness may continue for a while on a short time frame since there is little support from here, the next support level being around 1,520, then we have the uptrend line and SMA 200 around 144-146.
babaro
Also notice that DMI has turned positive on two hours chart fotr the first time since the beginning of the plunge, a month ago. DMI on two hours chart is a good compromise between DMI on hourly chart that is pretty much meaningless and the one on daily chart that is quite slow and is not that useful in terms of generating good buy/sell signals. DMI on two hours chart gives many more whip-saws than EMA 25 crossing EMA 50 on hourly chart but is good to have a look at it from time to time.
Overall the momentum remains bearish with market bellow SMA 75 and EMA 20 almost touching EMA 40 on weekly chart. Most likely the current rally is going to be another fake rally.
Gold suffered a big plunge today, again not really surprising keeping in mind the panic buying that push the price of gold above the price of platinum. However, overall gold is very well positioned and I expect higher highs (over $2,000/oz.). The weakness may continue for a while on a short time frame since there is little support from here, the next support level being around 1,520, then we have the uptrend line and SMA 200 around 144-146.
babaro
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