What Now ?
The stock and commodity markets in a sense had breakaway moves to the downside yesterday. Now the lows of Monday stand out as upside resistance for a potential bounce point in the upcoming time period. Also, the GM IPO will probably dominate the conversation for a couple of days. This IPO may be Obama’s biggest success in terms of economics so far in his term.
Gold which has been the focus of the speculative and fearful crowd is probably the most interesting on the downside now. The 200 day average has held the market on sell-offs for a long time. At the moment that average will be coming into the 1225 area in the coming period. That area also corresponds to the December 2009 highs. As such the market should be attracted to that area for a test as we move forward. This will be a big time test.