In Going to Test the Lows I argued that failure to hold the 850 support level on the S&P 500 would result in a rapid fall to support at 835 and 817. The actual low was somewhere around 738.
Fun times.
This rally seems to have some legs for several reasons. Equities have burst off their lows and from deeply oversold territory with a major accumulation day on decent volume. More importantly, the USD fell hard and fast at resistance around 88.50 (on the US Dollar Index), failing to create and hold a new high. Gold perked up late last week an early warning that the USD ‘safe haven bid’ was about to run out of steam.
This is Bullish for risky assets. For now.
Fun times.
This rally seems to have some legs for several reasons. Equities have burst off their lows and from deeply oversold territory with a major accumulation day on decent volume. More importantly, the USD fell hard and fast at resistance around 88.50 (on the US Dollar Index), failing to create and hold a new high. Gold perked up late last week an early warning that the USD ‘safe haven bid’ was about to run out of steam.
This is Bullish for risky assets. For now.
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1 comments:
Does the gold chart indicate a double top?
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