Wednesday July 25, 2012 6:00 AM CST
Momentum and internal indicators are turning negative. The weekly summation index did so on the close last night. This morning the media is fretting over the downturn in Apple that of course was supposed to go to $1,000. I am aware that this situation has frazzled the nerves and portfolios of many. Still, we have recommended Central Fund and I would not sell that under any circumstance. Gold has to go higher eventually. If it closes over 1600 today it will be as though the Proverbial Cavalry rode to the rescue in the last reel of the movie, gee that comment aged me....
SPX
The 50 day MA in blue is right down to the apparently neckline of a potential reverse head and shoulders formation from May into June, see above. In the last half hour yesterday the markets bounced right here
SPX - 30 Minute
Despite the negative rhetoric in the media, SO FAR, the chart displays higher lows where buying has come in. This is happening despite the moves higher in TLT and the Dollar, both of which are at extremes. We previously noted that investor sentiment is the worst since 1995.
So the stock market has done what it had to do, so far.
This morning Spain's IBEX is up a surprising 2%, after of, course, weeks of negative news. I take that back the news has not been negative on Spain it has virtually been predicting the end of Spain.
Gold has now risen $16 to $1597.
Crude oil is up, not much but 88.68, the 50 day MA is 86.29.
XES has come down to re test its 50 day MA around 31.
So, let's see what happens today. Mr. Market is doing his best to knock out the non believers, he is doing a great job, I am wondering myself.
Comments