Date With Destiny
It was great seeing both the new and familiar faces
at TM2001 this past weekend. To all of you, a warm hello!
Coming into the new week, it’s hard to avoid making the observation that the
market was in a short-term downtrend going into the initial attack in Iraq in
January 1991, whereas the market was in a short-term uptrend going into our
initial bomb droppings into Afghanistan Sunday. That’s worth pondering if you
thought that the first attack would be a pivot.
But how are the charts speaking to us? It appears we are near yet another
fork in the road, as key indices are hitting significant support or resistance
levels. On the following weekly charts, the Gold and Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
is consolidating just below a Fibonacci price cluster comprised of 38.2% and
61.8% retracements in recent swings. Their trend is up from last October, but it
appears that after further shimmying, an attempt at breaking above the cluster
may be in the cards.
Weekly XAU
Turning to the S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating), we saw weakness come in at the
resistance level that was formerly support prior to September 11. Same goes for
the Nasdaq
(
$COMP.X |
Quote |
Chart |
News |
PowerRating). Because these indices are having a meeting with
these key levels simultaneously, we’ll want to keep our eyes open for a
potentially important move to emerge the next few days. Intelligently guessing
the direction is impossible.
Weekly SPX
Weekly Nasdaq
