The buy the dip crowd showed up this morning to save the market from a potential decent down day. Right now, we’re in the euphoric phase (which will pass) and the bullish sentiment is beginning to go off the charts again.
We know what happens next, but while the market remains in float mode, especially at current levels, we would rather be spectators than gamblers. It’s very difficult to buy the market up at these levels after the type of move we had off the bottom about a month ago.
We look for signals that will tell us a correction is imminent. In tonight’s video I point out one index that has been giving us signals for a few days.
Gold had a pretty good sell off early in the day, recovered and showed additional weakness toward the end of the day. Also in the video, I discuss what to look for in the gold market, and when a new long position should be bought.
Crude oil remains weak, but we should be putting in a low soon, at least a temporary low anyway.
Enjoy tonight’s video.