Market sentiment matters, not fundamentals. Once the market is able to break out through 4375-4401SPX resistance, it will suggest that we are likely on our way to 4800SPX.
Gold may be poised for a rebound. However, we wouldn’t be out of the woods completely until we take out $1,950. Just regaining $1,900/$1,925 would be an accomplishment.
The relative strength index (RSI) for gold is currently at 21; this level has only been seen seven times over the past decade. Gold returned 10% on average over the next 78 days...
Key resistances need to show signs of a sustained rise for gold and silver to continue. Physical buyers of gold and silver will be using a buy on crash strategy.
Short-covering buying will catapult gold sharply higher. As specs rush to cover or face financial ruin, the much-larger long-side specs will pile on to chase gold’s upside momentum.
As for what the market will do, a tip-off might be if you get above the highs here at 1846.80, it might be the sign that we're finally breaking this bearing pattern.
