Summer Reaction from the e-SPZ and Spot Gold

So far, the e-SPZ (e-mini S&P 500) has pulled back just enough to fill a small percentage of the upside gap area left behind after last evening's post-Larry Summers Sunday opening.

As of this moment, the hourly pattern is not providing enough clues to suggest that the pullback is over and a new upleg is in progress, or if it will roll over again and decline to fill more of the up-gap area between 1692 and 1683.75.

The action in spot Gold is particularly interesting because last night, it too reacted strongly on the upside, climbing about $20/oz, presumably responding to the same stimuli, but just as suddenly, and very curiously, gave back all of its gains, and in fact, remains down $7.50 as we speak.

Is there a message in the divergent reactions between the e-SPZ on one hand, and on Gold on the other?

In any case, is Gold attempting to carve out a meaningful corrective low from its Aug 28 high at $1434.05?


  Matched
x
  • In our live, interactive Trading Room, we identify trading opportunities in ...
  • Equity Index Futures
  • Index & Sector ETFs
  • Individual Stocks
  • Precious Metals
  • Energy
  • Forex
  • Treasuries
  • International Markets
  • And Much More
Join MPTrader Now!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!