Mornin' all,
Just a quick update:
Dow - Took out stops above 11,370, the bearish pattern is busted. 'Recapitalization' and 'nationalization' are the new buzz words to replace 'bailout' for the Euro banking industry. So I guess everything is fine now, move along, nothing to see here. The short squeeze has produced a gap up this AM above 11,100. That gap may be filled at some point, if they fill it quickly and close the day in the red, then it might be a reversal (hang man candle). The Dow is now in a position to possibly produce a bullish iHnS in the next few days, with the right shoulder down needed. The right shoulder cannot move below 10,404 or that bullish potential may die. Daneric's count appears to be the correct one at this time.
USD - Now testing critical support at 77.50ish. It too may produce a bearish HnS in response to the stock market's new found momentum.
Gold - In a range bound triangle between 1597 and 1678, not sure how this is going to play out, USD looking bearish, so a pop through 1678, calcs suggest a target of about 1760 to 1775. But a drop though 1597, points to an initial target of about 1510ish.
Silver - Not behaving as expected. I suspected that it would be going up handily with the stock market, but it still remains at a lower high. Key support for silver is about 28.50ish, a drop through that level invites a move down to the $25 range.
Bonds - Added some TBT. I think some of the new found 'liquidity' in the Euro zone could be coming from the sale of US treasuries. Add to that the risk-on appetite for stocks.
Unfortunately the charting will have to wait.
All the best,
QG
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