This post was just published on ZYX Buy Change Alert

Yesterday evening after the fiscal cliff talks broke down, the momo crowd successfully ran up  gold to over $1671 but could not overcome the micro resistance at $1672.  Gold fell back under $1669 and the momo crowd tried to run it up again.  When the run up failed the second time around $1671, the Smart Money slammed it from the short side.  Gold traded as low as $1653 and is now trying to recover.

Silver simply followed gold.

Our short-term rating on silver is negative and on gold it is mildly negative.  However it is worth pointing out that both gold and silver are very over-sold and there is support at $1650.  If there is a bearish overshoot, the next big support is $1620 – $1630.  Support level after that is $1592 – $1607.

Expect the stock market to move based on the brinkmanship game that is going on in Washington.

Gold futures are at $1653, silver futures are at $30.34, and oil futures are $89.72.

S&P 500 resistance levels are 1444, 1450, and 1465; support levels are 1424, 1415, and 1410.

DJIA futures are down 12 points.

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