Today was emphatically down. -1.8%. That's now two days down from the top of an oversold range. That looks like an end-game to me. How much longer will it go down for? Just keep watching the trend . The trend is down.The RSI crossed below 50 today. That's the boundary line between bull and bear. The MACD is close to breaking below its signal line.
I think you all know that I like the Gold ETF as a hedge against falls in the general market. A few days ago I suggested that the Gold ETF was hinting at a reversal not indicated by the general market. That hint has paid off handsomely.
The Gold ETF is now surging upwards.
Personally I'm out of the general market and investing in the Gold ETF.
A more conservative way would be to remain in the market and invest in the Gold ETF. It seems to me to be a pairs trade which should prove to be close to neutral.
The market is now at short-term support. A pause or move up would not be unexpected.
I think, however, that the market has suffered such technical damage at a key area, that further falls in the medium term can be expected. A test of the early July lows looks on the cards.
Cheers
Red
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