Morning folks. Market looking at a slightly week opening today as the SPY is down about .6% premarket. Both SLV AND GLD are shooting strong up 2% plus this morning with USO (OIL) down abuot .8%. Amazing day in the market yesterday. It was the ultimate squeeze as we had a gap up in the morning a few minute of basing and then booom market shot up tick by tick the rest of the day. There were very few opportunities for the market to even dip as the bulls pressed it all the way into the close. This is by definition what you call a trend day. Not only did we clear the 20dma but also broke the previous highs of spx 1207. Volume was extremely light and we wont know till today if that was just a squeeze or possibly some monthly window dressing. At this point though with us above multiple layers of resistance this puts us right back to a potential run to the 50dma. Today as we are gapping down ill be looking very intently to see if the bulls buy this dip…. a lot of people missed yesterdays run as the gap up was pretty strong and many dont like chasing gaps. If we can hold this morning dip and make a strong bounce attempt that will give us a good inclination of who is in control this week in terms of bulls and bears. One note is that GLD has been on a pretty nice run the past few days ….not sure how to read into it just yet but with market so strong you would think there would be some outflow out of gold.
