The E-Mini S&P 500 continues to march higher after forming a recent low at 1553.25, and I’ve had my sights set on a retest of the 1600 level. I mentioned before that after a steady decline like the one we’ve had since last Wednesday’s, there is a tendency for the market to get a reaction rally. It’s what happens after the reaction rally that gives us a better sense of upcoming direction.
Typically speaking, when the market breaks a major technical support level, a retest of that level from underneath is usually sold, thereby sparking a bigger round of selling. If this case doesn’t play out, however, it will tell me the market remains extremely bullish. Only time will tell.
Gold has been extremely bullish the last three years, but has been virtually stagnant the last few months, which could lead to an impressive move ahead. Here’s a short and long term Gold outlook that could prove very rewarding..
I wrote about a great PEMA sell signal in Barrick Gold Corp. ($ABX) on July 23, which worked out perfectly. This time, however, I head straight for the source, as Gold futures looks poised to head lower over the next three to four days.
