Friday 10 May 2013

11am update - morning weakness

The market is seeing some renewed weakness, its only minor so far though, and the bulls can be comfortable with any weekly close >sp'1620. However, the precious metals and Oil are sharply lower, no doubt being pressured by a USD that is again building gains, +0.5%


sp'60min



Gold, daily



USO, 60min


Summary

Gold/Silver have both broken below their bear flags. The big issue now is whether we'll see a slightly higher low, or break the collapse low, and perhaps go a lot lower. Considering the wider QE fuelled market, its starting to look like we might just put in a slightly higher low.

Best guess, market holds within the broader up trend, with a close >1620.
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*I am long Oil from earlier this morning, and will hold into next week.
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11.05am metals and oil starting to show a more secure turn/levelling. Maybe 11am was again the key time.

Transports and R2K both green, and the weekly charts look very bullish into June..and possibly all the way to July/August.