NFTRH Update; Futures Status: SPX and Gold

Based on this morning’s futures, it looks like the stock market may try to convince us that it is done consolidating below the top of the ‘W’ pattern and could be ready for another bounce leg.  But the gap open projects to 1940, which is still below the ‘W’ high of 1947.  Realizing this and that Mondays can sometimes be head fakes before Tuesday reversals, let’s just say that the market has not proven anything until it proves something.  Right now it would open right at the blue dotted EMA 50.

spx daily chart

As for gold, it is ready for a correction (with silver even more so) when viewing the CoT data, sentiment backdrops and over bought status and technical resistance.  It is -26.40 in pre-market as of this writing.  That does not break it down from a potential daily consolidation pattern, which could still resolve to the upside.  But again, the theme is that a correction is coming.  Much like with SPX in reverse, this morning’s futures do not prove that a breakdown is happening.  But the elements are in place for a correction either starting now or after another up surge.

gold daily chart

Heck, here is the weekly from NFTRH 383 again, for another view of the lower support area.

gold weekly chart

Just a little perspective on the respective pre-market moves this morning.