A big Friday across the board in more ways than one. Not only was
that extremely key 6,255 level on the NASDAQ Composite convincingly
breached, it happened on the single biggest volume day the NASDAQ has
had since May of 2010. It clearly goes to show just how much of a
trigger the 6,255 level was on Friday.
To boot, the NASDAQ’s volume on the day was not only the biggest
volume day in over seven years, the number of block trades on the day
were enormous -almost double that of the previous day.
Meaning, large funds and institutions were either caught short and forced to cover on a break above 6,255, or they bought into the market in anticipation of another strong leg up.
We’re about to find out which, because if for some unknown reason the markets were to completely reverse themselves today, Friday’s technical move higher will have been the biggest head fake move in years. However, if we’re to completely trust Friday’s strong close, we’re well on our way to at least the 2,500 level on the S&P 500 – a target we’ve been suggesting for months now. We strongly suspect it’s the latter.
Gold appears to be headed for our previously published target of right around $113 on the GLD’s, the primary ETF tracking gold, so there’s plenty of room to trade the precious metal to the downside between here and there. It would be at that point around $113 on GLD we’ll have to assess what’s going on with the entire market landscape, because it could end up being a very ripe opportunity to get long gold again. We’ll see if and when it gets there.
Meaning, large funds and institutions were either caught short and forced to cover on a break above 6,255, or they bought into the market in anticipation of another strong leg up.
We’re about to find out which, because if for some unknown reason the markets were to completely reverse themselves today, Friday’s technical move higher will have been the biggest head fake move in years. However, if we’re to completely trust Friday’s strong close, we’re well on our way to at least the 2,500 level on the S&P 500 – a target we’ve been suggesting for months now. We strongly suspect it’s the latter.
Gold appears to be headed for our previously published target of right around $113 on the GLD’s, the primary ETF tracking gold, so there’s plenty of room to trade the precious metal to the downside between here and there. It would be at that point around $113 on GLD we’ll have to assess what’s going on with the entire market landscape, because it could end up being a very ripe opportunity to get long gold again. We’ll see if and when it gets there.
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