The stock market is continuing to see the selling waves being supported to keep them contained before they get out of hand (smart maneuver). So until I see the volume come back in a big way on the selling waves, I will just wait to get aggressive shorting into the rallies. The more important support and resistance areas are marked off. And it is important to notice how the stock market is coiling (building potential energy), as are most markets. There will be explosive moves coming up. November is the month to watch, as will next Spring also.
As for gold, I ran this chart in last night’s blog update, with gold into resistance areas. Here is tonight’s update of that chart. Please notice the big volume surge (red arrows) into the “breakout to new highs”, with some short term distribution (green and red arrows) –strong hands selling/shorting into the highs, and the selling continued on the way back down.Gold needs a “rest”, at a minimum. With sufficient rest and re-energizing, it has a good shot at rallying into month end. Regardless, I try to make it simple and sell into strength, especially at resistance, no matter what the time frame. And on a bigger picture, I am very interested in silver, especially next month. Here is a bigger picture chart of silver with the buy zones which I am waiting for (patiently) and marked on the chart – so below those points.
And lastly the US$. I continue to get plenty of push back for my consistent bullishness on the US$. Tonight the Dollar hit another new high since putting in the “spring” low (Wyckoff spring) which occurred on May 3rd. On the included chart of the US$, there is a very important resistance area at 100.5 approximately. I do expect it to get there, and if so, then we’ll see where we stand technically. But for now the Dollar is at an interim resistance area tonight (the red arrow). And the euro is at an interim support area (marked on the chart) from the Brexit lows on June 23rd. And shorter term this will have an effect on both stock markets and PMs. But the large upside pressure on the US$ still remains.
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