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Three words spring to mind. Just three words: Precious. Metals. Suck.
The most damning evidence recently is that during the market chaos on Monday, precious metals were weak. And during the market strength/relief rally recently, precious metals have been even weaker. So: damned if you do, damned if you don’t.
I was cheerfully short gold yesterday. I covered at a good profit. I stated on my Tastytrade show that I was “no longer bearish” on gold.
Yesterday was a classic lower band ride day with a touch of the 2SD daily lower band, an AM high that failed, and a gap fill and lower low. The obvious target is still the 1820 area and as long as the lower band ride continues then I think we may well make that target today. SPX closed back within the 3SD lower band yesterday, so SPX just missed a record breaking three consecutive closes below that.
For today I’d be looking for an AM high that would ideally test the daily 2SD lower band which closed yesterday at 1927. Any high under Monday’s high at 1954.09 is theoretically acceptable but I’d be getting edgy about the short case on a break over yesterday’s high at 1948.04, and would recommend being very careful with shorts on any break over 1954.09, as that is possible double bottom resistance. SPX daily chart:
