Baby Steps Today
Employment numbers were better today and Germany’s Merkle came through with a positive vote. These pieces will fill in holes as the stock market bottoms over the next month.
These days the Talking Heads on CNBC seem to be unable to find anything positive about Europe or Washington. That is good, this attitude should help foster a cleanout of the markets between now and the end of October.
At the moment we are looking for support to come in around 1070 on the S&P 500 and 1390 for Gold. Assuming that the long term uptrend of gold will continue the 400 day average is a good measure of where support exists and that is 1389 at the moment. Of course, a lot of good news in Washington and Europe over the next six months could end the gold move which started after the US entered Iraq some eight years ago.