Investing.com - Financial Markets Worldwide
⭐ Start off 2025 with a powerful boost to your portfolio: January’s freshest AI-picked stocksUnlock stocks

Two Important Days–Keep These Levels On Screen

ByHigh Chart Patterns
Published 09/27/2012, 02:51 AM
Updated 07/09/2023, 06:31 AM
GC
-
SI
-
XME
-
SIL_old
-
NOTE
-

The last two sessions have been pivotal:

Tuesday the QQQ closed under the 20sma — the first time since July. Note the previous tests of the 20sma and how the bulls repeatedly closed the market above the 20sma– until Tuesday. Bearish.
QQQ - CHART
However today we had the hold on the commodity sectors exactly on support. In bear markets support is futile; hence this action is important win for the bulls.

Re-test of Infinity QE rally and 20sma– perfect bounce for the silver miners (SIL). As we posted this morning right at support , if you liked the sector this was the place.
SIL CHART
Same thing for the junior gold miners (GDXJ) as bulls bid it up on the 200sma.
GDXJ CHART
The miners (XME) also nice bounce on the ascending 50sma:
XME CHART
And on the other side TLT going straight into resistance– we like that 125.30 area as a short term short on first test.
TLT CHART
And as extra bonus, we held the 25% fib retracement from the June rally. Technically though we could retrace all the way to the rising 50sma and be in uptrend (which is very much a possibility).
SPY CHART
We believe all talk about “market top” is premature. There’s still no evidence for it — today key sectors held the re-test and we believe market is digesting the rally. This could take a while, and it’s healthy, but it’s not indicative of a market top. What would make us more bearish? If we lost all the above said support levels on a closing basis with bonds regaining a trend higher move.

Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.