SP 500 and NDX Futures Daily Charts - Bounce...

Chief Executive Officer Vikram Pandit resigned today from Citigroup, which caught the market by surprise.

Considering that he had lost the confidence of the board and of the Chairman Michael E. O'Neill this is not such a great surprise, although apparently no news leaked out so it appears that this was a decision whose timing was decided by Mr. Pandit.

After the bell INTC beat the numbers it had lowered a few weeks ago.

IBM beat adjusted earnings but missed the revenues. Given the nature of their services business and their accounting of hold backs, I imagine Big Blue could write their name in the snow with their quarterly earnings number.

This was a nice bounce, but the bulls have to take it higher to break out of this pennant formation.

Net Asset Value Premiums of Certain Precious Metal Funds

Gold Shadow Chart - Cup and Handle Calls Out 2000+

The handle is now forming on our prospective cup and handle formation.

The formation will be confirmed if gold can break up through 1800 and keep rallying after a retracement in the handle of at least 20% and no more than 50%.

If gold falls through the 50% retracement then this is more likely a trading range and gold will fall lower towards the bottom of the channel. I do not think that this will happen unless stocks also fall quite sharply. Hint.

Minimum up side target is 2,050 with a chance for 2,300 on this rally leg.