The question on everyone's thoughts and minds has to be, is the stealth rally over in stocks and has the bull market in gold just begun?
Back on Tuesday, we warned that Tuesdays tend to be reversals days. We also did a recent poll asking if you thought the market was going to close lower or higher for the week. Results were remarkably close, almost a 50-50 split, so there's an equal number of people who are bullish and others who are still bearish on this market.
Overall the equity markets are lower for the week. Should we close at current levels or lower on Friday, it will mark the first time in six weeks that we've seen profit-taking coming into the market on a little more volume. Volume for the most part in this stealth rally has been low, very low, which is sometimes a clue that stocks are moving higher on little to no fresh buying.
We expect the S&P 500 to move back to the midpoint of its Donchian Trading Channel. That would bring the market down to the $1,390 to $1,380 level. Let's see how the markets close out the week tomorrow.
It is official, all of our Trade Triangles are positive on Gold today. Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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