The Dow Jones is up against the underside of the 2016 trend-line, while the S&P 500 is very near the 200-day MA. It looks like the upside has run its course for now and with resistance at hand the market is at risk of rolling over, even if only by a small amount towards the bottom-end of the range. For the Dow the bottom of the range is just under 23k and for the S&P 500 support is 2766.
Dow Jones Daily Chart (resistance and range in focus)
Dow Jones Chart by TradingView
Gold is trying to break completely free from the wedge it was stuck in, and while it has technically broke the pattern the reversal on Monday put a small dent in the upside. There still looks to be some room up to around 1800 where 3 peaks from 2011/12 could be problematic. A test and turn off those peaks could spark an intermediate correction, however, a break on through would seem to likely have the record highs at 1920 in play. Keep an eye on silver, it has been playing catchup. If it can keep rallying from here watch the 18.30 area where a trend-line from September comes in.
Gold Daily Chart (trying to maintain breakout)
Silver Daily Chart (watch trend-line on further strength)
To see all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
