Gold needs to break out from here, or risk a correction back down to support. The reverse is the story for broad equities.
Notice how the SP futures dropped right down to key support at 1322, to mark it firmly. While stocks remain above the 1320 level, Wall Street does not seriously believe that a budget impasse will prevail.
If stocks break down below 1300 we could be in for a Nantucket sleigh ride on the world market. And below 1290 it might be time to head for the exits.
I thought all along that the teenage drama queens in Washington would take this into last minute sturm and drang to impress their constituents that they are major players with serious concerns and must be appreciated.
The financiers like to create crises when they wish to get their way. It is always a mistake to give in, since it just encourages them for the future.
As a reminder it is Comex option expiry this week.
