US Markets Looking Troubled Again After the Bounce

The week has ended and lets see at few daily and weekly charts - Primarily Gold and SP500.




The bearish engulfing pattern made day before proves to be significant. The Friday was a Marubozu day if I may call it. Stocs have given a sell hence price rise will be difficult -- thats what indicators are suggesting.

 

On weekly basis, SP500 formed a Doji and has not shown any strength apart from having a technical bounce. Thus, the picture for the index remains bearish.

Gold had a great day yesterday. It closed quite strong almost nearing $1900 levels. Stocs have given a buy and macd almost will. We need a follow up in prices if gold has to run above $1900. It looks like it can do that this time.

On weekly has well, stoc looks like turning up again and that means prices are wanting to go higher for the time being.

HUI index has broken out - from a large trading range which might be signalling that the market now perceives them differently from rest of the general equities. This might be start of the great run for the Gold and Silver miners across the world. Unfortunately - In India we dont have miners listed. Below I have provided weekly HUI chart again showing the breakout. 

Conclusion - Bounce in the US markets looks to have ended. Gold as an asset which was moving against all the equity asset classes has made its move yesterday. Lets see on Monday if the cat if out of the bag. Being long in this scenario would be dangerous. Times call for cash preservation of being on short side for traders.