One thing I’ll be watching tomorrow is to see if gold forms a double bottom at these levels and bounces higher. It would be optimal for a gap down at the open, followed by a steady stream of buying during the later a.m. session into the afternoon. Watch the RSI line for a breakout of it’s downtrend to confirm a move up should that occur.
I’m keeping a particular eye on gold with that G-20 meeting coming up this weekend to see if I can find any clues to which way it’s going to move. Somebody, somewhere has to know something and it should start to show up in the charts soon if anything is really going to come out of the meeting.
The dollar’s chart is still very bullish and it doesn’t look like it’s going to stop, but should it stall here at a double top, that would likely be bullish for the overall market as they have been moving in an inverse relationship as of late. Just from my experience at looking at bullish momentum charts leads me to believe that this will continue to move up, but we have to be prepared for anything and not let what we think will happen interfere with our reactions to what is really going on.
