Tuesday, 12 February 2013

S&P 500 completes small throw-over of wedge, DAX applying downward pressure on big trend line

The S&P 500 has completed a small throw-over of the top trend line of the wedge it has formed since last April. The throw-over / false break could mark the beginning of a reversal lower. It's not a high confidence scenario at the moment as the throw-over was only small.

BUT keep one eye on Europe, where stock markets have moved sharply lower in recent weeks. The German DAX is pressuring the trend line drawn from its mid 2012 low, and a break lower could see European weakness spread across the Atlantic.

Gold breaks lower through trend line drawn from 2012 low, Silver now pressuring its equivalent line