Meanwhile back at the casino - ESRX clearly broke support, currently 63.83 (key support was 65) and hasn't moved back up to re-test 65. But with the big down day yesterday for the overall market, may want to watch ESRX to see if it bounces when the overall market gets a bounce. If it doesn't then ESRX may be on its way into the 50s and thus be a good short (no guarantees from the mgt :o)
The overall market is finally getting a pullback. First support level to watch is the rising 50 MA (20,420 for the DJIA), then next support is the broad band from 19700-20,100 (the Dec/Jan trading range).
Gold is coming up on key resistance at 1250-1260, which also roughly corresponds to the 200 MA (120.26 on the GLD). Punching thru these levels would be bullish, though might expect a pullback first since this is key resistance.
But the direction for gold likely depends on the dollar, which is sitting right near key support at 99 (early Feb low), but not looking too robust. Looking at the dollar ETF (UUP) currently at 25.71 it's just above key support (25.60). If that fails then next support is the falling 200 MA (25.43) and then 25.20 (July 2015 high). If the Fed Governor replacement situation clarifies as being more hawkish, the dollar should then start to strengthen again. But based on the chart, in the near term it looks like a test of 25.43-25.60 range is likely (fwiw..)
AI
