Markets were flat to start the week and bulls are not under the assumption that the old adage never to sell a dull market applies today. There having been many days were the benchmarks were near the UNCH line, and it seems that it is either that or big moves lately mostly in the lower direction. The bulls can at least point to today that the markets did CLOSE near the days highs, something it has been unable to achieve recently. The Nasdaq is now down 12 of the last 18 sessions and on a 3 day losing streak, with all three CLOSING underneath its 50 day SMA. That important line to beginning to flatline and bulls are looking for that to be temporary. The tech rich index was the worst performer of the big three falling less than 1% and the Dow and S&P 500 were higher by .1 (the Russell 2000 lost .1%). Peering into individual sectors it was the staples and utilities acting well once again, with the XLP up .4 and the XLU adding .3% and the XLV advancing .5%. There seems to be a lot of talk of gold recently, perhaps with perma bears coming out of hibernation with the market “seemingly” on the ropes. Looking at the GLD itself the chart looks to have put in a triple top at the 123 number from the 4/17, 6/6 and 8/18 sessions. On a longer term view, which to me are better predictors, it has the potential of completing a bullish 3 week tight pattern and has formed a bullish ascending triangle and a break above 124 has a measured move to 141. Looking at some individual names in the space below is the chart of NEM and how it was reviewed in our Wednesday 8/2 Game Plan. It is still a few percentage points away but one should keep a close eye on that 38 level.
This article requires a Chartsmarter membership. Please click here to join.