Weekend Dec 31 2018
Her is the New Low chart marking the February 2016 low
2009 has this same look. Yesterday's post showed new lows dropping 97% this week suggesting a final low for now.
2016 New Lows Versus New Highs
NASD McClellan Oscilator
This looks very positive
VIX appears to have made its high as new lows have shrunk
I read several market letters including the group at stockcharts.com. All of them remain quite fearful that a resumption of the selling will take place this week.
You tell me, but the charts of market internals I posted today and yesterday seem to indicate an improving situation and possible bottom.This is particularly true for New Lows and New Highs versus New Lows. Oddly I don't see any comments about year end tax selling or window dressing by funds on the last day of the year. This is usually a big deal at year end. And again, re read McClellan's update on teh 10-1 indicator.
Let's look at metals.
Ratio Chart of Gold Bug INdex to SP
Well there you have it. We have a textbook island reversal where price makes a new high and then immediately reverses leaving a gap on the chart. RSI and MACD are in the process of reversing as well.
SPX versus HUI mirror image
Here the SPX appears to have bottomed against the gold shares.
Seems to me the logical thing would be for gold to top here and pull back to say 1250. At the same time SPX stages a ferocious rebound causing most to think all the worries are now behind us.
Gold
The 20 day MA is 1256 a retest of that break out would be a logical thing now that RSI and MACD are at the top of their ranges.
Silver
Silver is finally joining the gold party challenging its 200 day MA.
Al of this of course is speculation but a two week stock rally with gold pulling back while oil does little is my best guess.
The extreme weakness of the entire energy market suggests economic slowdown world wide.
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