Friday, January 06, 2012

Place your bet

We’ve posted these charts on the stream in the last 2 days but wanted to bring them in together to show what is at stake:

We’ve spent all week digesting, but not filling, Tuesday’s gap on the $SPY.  This is bullish digestion above the 200sma on daily.
$XME is boxed in by major moving averages– it bounced on the 20sma yesterday but is having trouble with the 50/100 from above.  Make or break time coming up next week.
$SLV repelled by the 20sma today — note trending slope down.    Very clear line in sand.
$GLD repelled by the 200sma — we had this as a short resistance spot all week but alas  took it off radar yesterday.  Again, clear line in sand.
Nice tight bars under 200sma on the $XLE and has refused to fill the gap — again, roll down or break-out coming soon.
As we wrote yesterday divergence between Euro ($6E_F) and market is deepening — one of them will give in soon and there will be some reversion to mean.   Place your bets on which horse will fall first.