Morning folks. Market a bit overheated as we are right at resistance levels and overbought. Many stocks are a bit exteneded. This huge run in gold and silver looks bullish when looking at the underlying commodities via their etfs SLV and Gld many of their stocks stocks have gotten so extended any additional run setsup a mini-blowoff top type setup where they snap back in a way that leaves the buyer of the last run with a 20-30% loss.
futures are gapping down .5% or so on the investors await key economic data on trade and manufacturing, and mull over Japan’s decision to push down the yen’s exchange rate. With Japan intervening in the currencies crude Oil futures are having a nice dip down to the 75/barrell level as strenght in the dollar is bad for oil prices.
Traders are in limbo right now awaiting news to see which way they want to send the market. As I always mention when the market is at resistance and overbought one piece of bad news can pummel us in a matter of days back towards the bottom of the range. We have been up everyday for 2 straight weeks. Take profits keep moving up your stops and EXPECT the unexpected.
key levels to watch is SPX 1130 if not the 200dma needs to hold.
