January 4th Levels Still to be Watched
January 4th as we mentioned at the time was an important date when markets reached a level where many investors took leave of the euphoria. Since then some of the leading edge of the euphoria phase have rolled over, markets like gold, silver, crude oil, copper, and the China ETF “FXI”.
Over the next two days I would watch CAT for an indication of how one of the fat cats handles the 1/4/11 low of 92.30. If that level is breached I would use it as confirmation of the topping action being completed.