After some pretty ugly action lately, the S&P500 did give up a bit more yesterday on above average volume – with major Indices finishing just a bit off their worst levels. Over the past few days, strength has been sold. But, still, there has been no real technical damage and uptrend remains intact. There has been no evidence that the dip buyers have gone away. And it appears that there will be a higher open today.
We have often spoken of our keeping an eye on the precious metals, believing that gold could reach about $1,000 an ounce. And the goldminers have performed as expected.
We will sound like a broken record – but, once again, we believe that it is important to keep an eye on the $USD. The dollar has been showing weakness, and the thought is that investors have been looking for the safety of gold.
We will watch whether this morning strength gets sold – and there is always the possibility of a squeeze here.
Be careful out there.
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