Gold Daily Chart

SP 500 and NDX December Futures Daily Charts

The market is acting like there is a 'Bernanke Put' underneath it in the form of a handsome QE II to be unveiled at the FOMC in early November.

Meanwhile the financial sector is imploding because of the continual revelations of pervasive mortgage fraud.

It will be interesting to see if the PPT can hold things together until the November elections in the States.

Gold Daily and Silver and Miners Weekly Charts

Commentary on gold and silver action was posted here intraday.

Remember the caution that was sounded about the trends being extended? We are now in the process of correcting that.

SP 500 and NDX December Futures

Earnings are coming in on the 'spotty' side with signs of weakness despite the ardent cheerleading from the talking heads and the financial 'journalists.'

The big tickle today was the 25 bp increase in interest rates by the Bank of China which the market was shrugging off. But in the afternoon Bloomberg disclosed a suit by some financial heavyweights including the Fed against Bank of America for dodgy loans originated by Countrywide Financial which BofA had acquired. There is some speculation that the relative outsider BofA will be 'Lehmanized.' Personally I would like to know who is holding their Credit Default Swaps and if the Goon Squad (GS) is among them.

Notice that no significant support was broken today in the stock indices so tomorrow will be quite important in setting the trend and tone.