Markets rebounded somewhat Wednesday with the Nasdaq failing to recapture half of Tuesdays losses. Perhaps more telling was volume today coming up well short of the heavy volume shellacking that transpired yesterday. The tech rich benchmark rose .6% slightly outpacing the S&P 500’s gain of .5%. Precious metals continue to bask in the sunshine as the GLD is now just below a 128.34 double bottom with handle trigger. The ETF is looking for a sixth consecutive weekly gain, and that was matched earlier this year with a 6 week winning streak between the weeks ending 2/7-3/14 (GLD gained just more than 10% in that span). That marked the high for the year thus far in 2014, and was followed up by a strong 2 week reversal of 6.5%. Looking further back to when a streak of that length occurred we would have to go back to a 7 week winning streak dating back to the weeks ending 7/8/11-8/19/11 where it gained 22% during that impressive run. Interestingly enough that also coincided roughly with the metals multi year sell off. SLV continues to trade very tightly near the round 20 figure. Notice it has not once closed below that handle since closing above it on 6/20. Another metal, certainly not precious, to keep an eye on is steel. The SLX, although it trades very lightly, is in the process of forming a handle on its present cup base. Potential trigger is 49.67.
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