We are now well off this morning’s lows, and the bulls have gotten above that 1153 level on the S&P 500 I discussed earlier. It is a tough grind, though, as the bears are looking for entries to reload shorts for a potential afternoon rout. I continue to watch this area closely, since it is proving to be a real battleground just above 1150.
Silver is down hard, while gold is coming in as well. Seeing the precious metals lose ground is, to my eye, important for the unraveling of the infamous fear trade we saw this summer, especially gold. So, to see gold down even though the market is down too is a slight net positive for bulls looking for divergences in their favor.
Finally, Apple continues to hold up exceptionally well considering how stretched the monthly chart is. The reaction to the Steve Jobs’ news has been tame, and the overall action remains constructive. This is most certainly another positive divergence to which bulls will point. Note the benign pullback to the 50 day moving average, above the August lows on the daily chart below.
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Gap trying to fill the airball.
Thanks for your great info and commentary chess