An explosive move this morning in stocks was a near-vertical lift which never can be maintained for very long. Investors have to decide, keep loading up on stocks at the same time dumping gold. I have labeled this like a diagonal 5 wave sequence but it remains to be seen if another leg down is going to happen.
Gold went south while oil enjoyed a big rally. About all it tells us, is that investors are willing to dump gold stocks at a drop of a hat if they think stocks have seen a major bottom.
The Russell 2000 and the Midcaps do not confirm the SP500/Dow/Nasdaq so I think this is still part of a bearish rally.
The full moon is due on Thursday of this month and last night I could hear the coyotes howling under the power lines. Just kidding folks as moon cycles can trigger any type of a turning as I don’t see them being all that reliable anyway.
There is a gap below at the 2915 price level, so I’m sure that gap will get filled in the near future!