S&P 500: Moving towards the resistance
I posted alot on the S&P 500 weeks ago regarding the likely direction of the market. Right now, volume may be high but strength seems to be lacking.
On the weekly charts, RSI seems to be weakening, although MACD still looks good. Right now lets see if it can break the 1400 resistance. I have a feeling if strength doesn’t pick up we would most likely move down rather then up but its very hard to say how low it will move.
The VIX is at a very low level but it will just take some market moving news to spike it up. Thus, we will only judge when the picture gets clearer.
Breaching 1400 on the S&P500 and staying above it could be important for the bulls.
In contrast, the HUI looks to be in the opposite direction. It failed to breach the resistance at 450 and are finding support either around 400 or 365. Moves in gold stocks are vicious, so investors with gold exposure should take note of the volatility and see if you appetite matches it.
I took a look at some of the gold juniors and Kimber Resources (KBX) seems to be holding up very well during these few days where the gold stocks was beaten down badly. However MineFinders(MFN) looks to be following the trend of the HUI.
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