Sunday, February 24, 2013

24 Feb 2013

 Even though the Dow reached back to 14K on Friday, new highs have plummeted.
 Short term is nowhere near its last peak either.
Same for the medium term indicator.

Yes, you could look at these another way and say, this is evidence that the indexes will go higher and these will bounce.  This is entirely possible.  Or you could look at it how I am, as it shows underlying weakness and selling that is masked by the broad indexes.

Gold selling has accelerated after it broke the support I pointed out two weeks ago.  It remains above its needed point to form an inverse head and shoulders.  Silver has broken through its trending support line as well, but it also has a possible inverse head and shoulders.  Once both of these break through their descending peak trendline, it will be off to the races again - this could take time.

"The more we do to you, the less you seem to believe we are doing it."
Dr. Josef Mengele

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