Thursday, November 20, 2014

Nov 20 - Equities rebound strongly, GLD recovers

Major indexes showed strength recovering from a gap down.  In strong bullish trends these outsized gaps often present very good risk to reward for gap fills.

The short set up looks like its a week away if and when the negative divergence in HYG / SPY appears.  Problem with this is that it runs into December which has very strong seasonality behind it.   Until then the longs continue to have the upper hand and continuing to squash weakness by rapid (or rabid) buying.

GLD bounced well today and seems to be primed for more upside.  On the good side, UUP appears to set up to slip down some with a CCI and black reversal candle and FXE looks to rebound with a decent amount of positive divergence.  On the down side, GLD still stuck underneath serious resistance and will need to clear it to continue moving up, otherwise GLD could bounce right down and continue its long term slide.

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