Gonna keep this short for now. Markets look like they want to head lower to test 1077, but if they don’t I would expect a sharp rally to the 50-DMA at around 1,260 on the S&P.
If that happens we could see some profit taking in gold and silver. Not buying into this silver rally as it has that look of a “2nd chance” parabolic move that’ll hurt alot of traders. Happy to sit this one out which could finally signal the D wave decline.
Stay safe, keep your powder dry and your patience is most valuable right now. Fed meets in Jackson Hole beginning Thursday, and any hints coming from Helicopter Ben regarding QE3 will jack this market up in a hurry – but only enough to prepare for a longer-term downside move.
Now enjoy some more fabulous work by Danny Mac…………..