On a long term basis, Gold mining stocks, US Treasury Bonds, and gold, are outperforming The S&P 500 Index. As usual, the reporters on bubblevision aren’t covering this. Instead they have OCD over the latest gimmick from “the social network”.
We can see on the Gold Miners Index (GDM) (GDX) chart, Weekly lookbacks, major S/R (Support and Resistance price reversal) from February, at the $662.10. To continue Bullish, we want to see it close over, on a Weekly and Monthly basis.
Stock chart of the Gold Miners Index (GDM):
Looking at the Weeklies going back 7 years, there is a major S/R (Support and Resistance Price reversal) at $1,365. We can see on the chart, each time it hits that price level it sells off. This is Bullish if it closes over on a Weekly and Monthly.
Today the S&P 500 Index has re-established a long term Upward trend. It has crossed above a trend momentum measure of, at or above, a 10% annualized rate of growth over a 200 day ma. Additionally today, it is trading above last weeks high.
Which do you like? The 10 year US Treasury Note today is yielding 2.13%, and many around the world are 0%.
So we’ll see how the day and the week close.
Trend following uses price action, and ignores news, tweets, FaceBook, hot tips, stock and economics “fundamentals”, and bubblevision (television).
the index is trying to rally
To begin to re-establish a long term Upward trend, we want to see it overcome the S/R (Support and resistance price level) of the High of last week – $2,841. This will help to show us that The Fed tweet is more than a short covering rally. Currently the Index is trading below a 10% annualized rate of growth over a 200 day ma.
Stock chart of the S&P 500 index
Trend following The Nasdaq 100 Index this week, looking at the weeklies (lookback), it is breaking below the weekly Upward breakout (gap up) from back in March.
stock chart of the Nasdaq 100 Index
continuing the downward trend
As noted in a previous post, the $2,800 area is a major S/R (Support and resistance price reversal level). Today, intraday, looking at the weekly lookbacks, the Index has ‘elected’ this bearish reversal.
S&P 500 Index stock chart
The long term Bullish Trend stopped on May 8th. The price dropped under the 200 day ma of 10% annualized growth rate.
the market sell off continues
Trend following, no predictions, no forecasts, The S&P 500 Index (SPX), trading at $2,809, is approaching today a major Price Reversal today. Looking at the Weeklies, there is a major Bearish Price Reversal at $2,801, as shown on the stock chart. The Index traded under a 10% annualized rate of growth over 200 days ma, on May 7th.
So, we’ll see how the week closes.