The candlestick on weekly is a bullish one and has managed to close above the 200wma. Though the average has flatlined which should be cause for worry a little. The index by coming down has somewhat corrected the overbought conditions. The conditions suggest that shorts will not be profitable and odds favor being long.
I have similar thoughts for SP500 as well as the chart is shown below.
Gold measured in USD remains in consolidation mode and will remain so until we see a good base being built now possibly, The chances of a V shaped recovery will not be high until the central banks around the world announce QE3 or we have some sort of default from some of the soverigns. So rather than trying to catch the bottom in gold - its a good time to accumulate the stuff physically.
Silver was damaged technically and it will take its own sweet time to heal. We have same opinion as we have for gold that its time to accumulate the physical stuff rather than trying to follow the price which would not give much gains.
USD is trying to breakout after forming a base. Its overbought at the moment on weekly and thus a profit taking week or so is warranted in the currency.
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