Is It Reversal Time For the Markets?

At the start of a new week, have we turned around or is this just a correction in a larger bear market?

I think you’ll find today’s video interesting as the S&P 500 has made a remarkable recovery. However, it is back at a crucial Fibonacci retracement level which could present major problems for this index.

In our recent survey we asked traders if they were concerned about what is going on in Europe. A remarkable majority, over 75% said they were, and they do watch events in Europe very closely.
At this point, Europe is really the tail that wags the dog and we are not optimistic that things are going to work out in a positive fashion.

They have had a total of 13 summits in a period of 20 months trying to solve this problem. With the likes of Berlusconi, can you imagine telling him what to do? And other players like Nicholas Sarkozy shouting to Brian Cameron of Great Britain to shut up and butt out. And that’s the stuff we hear about!

Imagine the stuff we don’t heard about.

Let's look at the Trend Analysis for the gold market......

The gold market rallied from the lows seen last week at $1603 and have now rallied back to a Fibonacci retracement level of $1,659. While the long term and intermediate term trends remain positive for this precious metal, it is still locked in the confines of a fairly significant trading range. I think most traders would be better off just watching from the sidelines. Only long term traders should maintain long positions with the appropriate money management stops in place.

Well, December gold futures closed up $15.30 an ounce at $1,651.50 on Monday. Prices closed near mid range today as trading remains choppy and sideways. It was a “risk on” trading day in the market place today, and those types of trading days have been bullish most commodity markets, including gold, recently. Bulls and bears are back on a level near term technical playing field.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 100

Now, let’s go to todays video and look at the charts of the six markets we publicly cover and see some of those important retracement levels.

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