A 2% drop over a two day period was promptly reversed on Friday’s bullish jobs report, sending stocks approaching, but falling short of new highs. A negative momentum day was registered on Thursday, after a record-breaking 22 consecutive days of bullish momentum. Along with that, our Upside/Downside Volume studies finally achieved a string of near-term bearish readings, as well as a trend “turndown” on our ADX. Stocks have virtually run out of room on the upside, and should now be followed by a period of weeks of modest, choppy declines and rallies, while the New Economy sector starts to under-perform, ultimately leading to an important high around the end of May.
The metal was rigged with paper selling pressure all week, with spot gold testing 1266, before bouncing Friday on the jobs report, settling 1279. Spot gold strong support 1248. Spot gold print 1325 will put low in. Weekly close over 1360 will start run to 1600. GLD Fib resistance 124.39. SLV Fib resistance 14.73. GDX Fib resistance 22.50. The shares (XAU) were weaker, losing 5%, settling 68.79, and recording a 15 week low vs the metal. With our Upside/Downside volume studies continuing to show multi-week bullish divergences, any short-term weakness is looked upon as extraordinary buying opportunities. Spot gold 55 week mvg avg 1268.24.
The greenback was soft, pulling back from an over-bought condition with UUP settling 25.16. UUP Fib support 25.86 – 25.77 (strong).