Thursday, 11 October 2012

S&P 500 rallies from corrective channel's lower trend line

This afternoon I tweeted "I'll be surprised if S&P futures didn't begin another leg up this morning, though have been surprised many times before #lowpointsatrisk". Here's why I thought the rally was a good bet.  If the rally falters, 1420 remains the next key level, as I posted yesterday.

Gold rallies from test of mid channel trend line

Gold has not followed through on the weakness I posted about on Monday. Instead it has held up strongly relative to stocks and other undollars, and today has rallied from the mid channel trend line of the up trend channel illustrated below. The market has tested the mid channel line three times in recent weeks so evidently considers it important, indicating that we should also.