The S&P, The dollar & Gold

It looks like Monday could provide some big clues as to the direction of these three markets.

The S&P is making new highs but the momentum index(NYMO) is not confirming these highs. On top of this the advance/decline  indicator (NYAD) is flat. If the rising trend line is broken Monday we will see the first serious correction in 36 days of trading.

The US dollar is looking very weak. There is a falling triangle in play and if 80.7 gives way Monday the dollar will fall fast.

Gold is hinting it wants to rise. It has just broken above it’s declining trend line, but needs to clear it well to show its colours. If the dollar breaks below support Monday then we will get that clear break. If gold clears $1258 we will also have a new trend on the weekly charts.

Monday is going to watched closely by many. My call that gold may have bottomed is looking slightly stronger by the day.

God bless


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