Feb 2nd, 2010 We are seeing the market follow through from yesterdays strong rally with the Dow, SP500 and NYSE break the previous highs seen on the hourly charts. We now have a higher and high and waiting for a pullback for a higher low. This would complete the trend reversal and this is also the definition of an uptrend. There is a little more room for stocks and metals to move up today before trading deep into the next short term resistance level.
DOW & SP500 Hourly Charts
Gold Hourly Chart Gold and silver have put a in the same move as the indexes mentioned above. I figure we will get a pause here for a couple days as the metals try to push up through this resistance level.
US Dollar Hourly Chart The US Dollar has formed a very nice bull flag and is trading at support. This has me thinking that the majority of index and metals bounce is finished, for now anyways. The dollar should start to bounce in the coming hours which will put pressure downside on metals and large cap stocks.
USO Oil Hourly Chart Oil has put in a solid bounce as it moves above its previous high set on the hourly chart as it also tries to reverse to the upside.
Quick Wrap-Up It looks as though the downward trend is starting to reverse back up. During transition periods like this is when things generally get even more choppy. I am on alert for new setups in commodities and ETF’s as this could be a possible bottom.
http://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.png00adminhttp://www.thegoldandoilguy.com/wp-content/uploads/2014/11/tgaoglogo.pngadmin2010-02-02 12:23:432014-03-10 10:04:13Possible Trend Reversal In Gold and Indexes