The markets love to keep short-term traders honest these days, so a
pullback first would keep both sides of the trade pretty honest.
Meaning, if the major indices start to pullback, the move “could”
suggest the beginning of a move back to the lower end of the S&P
500′s range, which sits down around 2,325.
Conversely, it also puts the index in a position to pause at any
point over the next several days, and start working its way on to new
highs from there.
If the markets are going to pullback and pause, the most logical levels for it to happen on the S&P 500 would be somewhere around 2,367 to 2,360. That’s where both the 50 day simple moving (green line) and the 25X5 DMA (purple line) currently sit on the daily chart here.
The bottom line is these markets still have every technical right to move higher, so we’re assuming those two levels on the S&P 500 will be fairly pivotal toward determining if they’ll want to go higher or simply go range bound on us.
As for gold, let’s just say oil’s reversal on Friday was far and away the more impressive move. Gold still appears to be a little suspect at this point, and although we do still anticipate at least a relief rally soon, it’s clearly not out of the woods quite yet. It’s holding its own for the time being, but there’s going to need to be some sort of technical or fundamental event to strongly suggest a reversal from current levels is in the cards.
At this point, there really isn’t any big reason to run out and make any substantial moves. Let’s see how things play out over the next few days before we have a look at either increasing our long positions or further lightening the load – and potentially even get short a few ideas.
If the markets are going to pullback and pause, the most logical levels for it to happen on the S&P 500 would be somewhere around 2,367 to 2,360. That’s where both the 50 day simple moving (green line) and the 25X5 DMA (purple line) currently sit on the daily chart here.
The bottom line is these markets still have every technical right to move higher, so we’re assuming those two levels on the S&P 500 will be fairly pivotal toward determining if they’ll want to go higher or simply go range bound on us.
As for gold, let’s just say oil’s reversal on Friday was far and away the more impressive move. Gold still appears to be a little suspect at this point, and although we do still anticipate at least a relief rally soon, it’s clearly not out of the woods quite yet. It’s holding its own for the time being, but there’s going to need to be some sort of technical or fundamental event to strongly suggest a reversal from current levels is in the cards.
At this point, there really isn’t any big reason to run out and make any substantial moves. Let’s see how things play out over the next few days before we have a look at either increasing our long positions or further lightening the load – and potentially even get short a few ideas.
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