Market....Rallies in downtrends are often sharp.
Remember the long climb out of last Sept's lows? Endless days of up 20, up 30 on the dow.
There were almost no 100 down up point days for a long time.
[yes, there can be upside volatility-we witnessed that the first few weeks blowing out of the March of 2009 lows-more the exception].
While welcome, [the rally today]...it does not change the big picture [longer term] of the Dow or SnP chart.
I've been saying for quite a while it would take over spy 126 to do that.
I'd say there is a new number to add to that.
While 126 is still very important, it would be positive to even get above 122.50.
If the market musters that, [what I think would be] a big fight at 126 is likely to take place.
Meanwhile, the longer term chart still looks dangerous from here.
F
Golds short term low this morning was $1538.
It's now at $1638. The fibo .382 retrace is to around $1682, so today's rally off the low was so vigorous, gold has already traversed a big chunk of it's .382 retrace.
Doesn't mean it can't do more but its a number to keep in mind.
by the way.
Have not heard any reports on it but it's a near sure bet that buying in India-physical buying has been hot and heavy. They tend to jump all over price weakness.
Best guess is that there has been a lot of physical buying with the decline.
Keep in mind, the dramatic price moves the last few days in gold and silver are from the futures market and hedge funds.
Not physical supply and demand.
Never forget the power of hedge funds to move things in the short to intermediate term and their tendency to group think and group act almost simultaneously.
That makes for extreme volatility.
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