Tuesday was an amazing day with so many growth stocks rising. Happy Thanksgiving to everyone!!!
On Friday, GLD appeared to have had an above average volume move up, closing above its 30 and 50 day averages. Green dots show reversals in daily 10.4 stochastics and 3 recent bounces off of a similar area of support. What is strength in gold telling us?
Perhaps the strength in GLD is reflecting resumption of the down-trend in the dollar that began in January. A weak dollar could be an ominous signal for the US economy.
The GMI remains on a Green signal.
Among US stocks, more new lows than highs and only 105 new 52 week highs on Wednesday, lowest since late August. However, SPY and DIA are in short term support territory. This daily chart shows that the SPY just kissed its lower 15.2 daily Bollinger Band, an important area of support. If this bounce fails, I expect more weakness. But remember, we are near the period when the end of quarter mutual fund window dressing rally in the strongest stocks should begin.