A negative day, from a technical perspective in the gold market. It could be that we have seen some highs. Will have to see some more movement in the market before I would say that todays move was the high in the market. We hit resistance above $340 for the Dec contract
however, the buying interest quickly dried up once we got to those levels . Prices stabilized during mid session, but selling began to pick up late in the day, which lead to the reversal down in gold, pointing to lower prices ahead. Silver prices, which lead the rally to the upside earlier this week, was also lower on the day. We did see some mild buying coming into the close, but I would look for the silver market in the days ahead to give us the best indication of the
direction of the precious metals. Dec gold down .80 to $336.10, Dec. silver down .047 closing at $5.185.
Be cautious at these levels in stocks and bonds. Employment data coming out on Friday, would wait for that before doing any more buying. Watch the metals very closely. I think that we are coming to a critical point here, where we could turn back down, would give it a couple more days before I'd become a seller.
Given the recent history of the stock market, and its dependence on the movement of interest rates, expect to see the stock market moving in tandem with bonds. Strong resistance in the S&P at 966 (Dec), expect this to be broken in the next few days, afterwards moving towards new all-time highs towards the 979.60 area. The only potential trouble is Friday's employment report. If the growth in non farm payroll is above expectations, then we could see a pullback in stocks and bonds. This might be viewed as a buying opportunity. |
