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.