16,000 Held for Now
At one point today the DOW was down well over 250 points trading near 16016. We saw significant buying right after lunch time and at around 2:30 this afternoon I had a buy signal on the market. It was a complete reversal and the DOW closed down only 75 points. I am looking for a pullback in the 15500-15900 range. I am expecting it to come sometime between now and October. The S&Ps got down to 1898 and then closed around the 1920 level, a huge reversal in the market. These reversals are a sign to me that the markets are trying to find a bottom.
Today oil got down to the 43.5-43.7 range and then reversed back up closing in the 45 range. Oil as well is trying to find a bottom. I see no clear patterns currently and am staying on the sidelines until I see a clearer pattern.
I told you gold was down and should make a higher low and it did. Today gold was up well over 20 dollars and closed above the key level of 1144 where gold would go positive on the daily charts. Gold closed up at 1153, 9 dollars above my key level. I am now looking for a pullback in gold and gold stocks to go long. I see a pullback happening in the next 5 business days. I am looking for an entry in the 1128-1138 range for a long pattern to a move above the 1155-1165 range.