There are two other things to note from this chart however. The first is that the high yesterday hit the strong resistance area that I was highlighting yesterday morning, and that area is obviously still strong resistance. The second is that there was negative RSI divergence from overbought on the ES 15min chart at the close yesterday. I mentioned yesterday morning that if the downtrend was to continue then this rally would most likely fail the next time we saw this. I'll be watching that rising channel support on the SPX 15min today:
Gold is showing some signs of life here, so I'll also post my bigger picture chart for that. I posted this a few weeks ago forecasting a return to the early 1600s, which was a nice call as the low since was 1613. My bullish option from there was that a bullish IHS and bull flag would complete and break up towards new highs. I have some downside concerns from the bearish looking GDX chart, but that bullish scenario is still very much in play. Key resistance is not far above at the 150 DMA at 1694, and a close above would look bullish. I'll confess that as long as Bernanke stays at the head of the Fed I'll be leaning bullish on precious metals, so I do have some bias here:
I showed a video from Perfect Stock Alert yesterday and had a few comments afterwards about this that are worth noting. I see that this chartist had a subscription service in 2010 that burned a lot of subscribers badly, and you can see some articles and videos about that by searching online or looking at YouTube. I think this guy is a decent technician and I like his free daily videos which are interesting and educational. His longer term forecasts may or not have any value, but I haven't been watching those, and history would suggest treating them with some caution.