Oil has continued to move higher as expected and is approaching the August high. It appears that gold and silver will top whenever stocks top coincident with a bottom in the Dollar.
Tuesday, October 5, 2010
Critical Juncture For The Bears
We are at a critical juncture in the markets for the near-term bearish case. I have shown the bearish interpretation in the 5 min chart of the Dow below with this morning's impulsive move higher as wave (c) of ii of an expanded flat correction. This view will remain valid as long as the Dow remains below the 9/30 high of 10948.88. But in addition to that, we should expect that markets will begin to selloff sharply by the end of the day with a possible 3rd wave gap down opening tomorrow. If these latter elements do not materialize, then markets will most likely move considerably higher over the coming week before a top is seen.
Posted by R. Craig Pritchard at 10:54 AM