Wanted to highlight the daily nasdaq chart today, which is not improving at all. I have mostly been keeping my eyes on gold and the gold miners and the nasdaq as I feel that these sectors will tell us where things are going. If the nasdaq begins to break down, we can be certain the Dow and the SPX will follow. In the event stocks break down, we can also be pretty sure gold will move higher either as a reaction to the move lower, or it will foreshadow the move in stocks by going higher prior to a nasdaq break down. There is nothing of interest to note on the gold stocks, which are just drifting aimlessly, so let's look at the nasdaq. ..
Bulls are keeping things afloat as it dips near 4000, but there is no momentum to push it higher than the 4150-4200 area. Price is butting heads now with the down trend line from the top of the head back in March. Pressure is mounting and there must be a resolve soon so watch closely. We will likely see a break lower in the next week or two and have a good opportunity to short the nasdaq with a target around 10% lower .
-Jonathan M Mergott
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