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Gold is hanging at the 1375 resistance, the former target of the breakout from the big cup and handle formation. It may take a little while, but if the markets hold together and gold can clear this level it may romp higher and reach our intermediate target more handily than most imagine, with perhaps some additional hesitation around the psychologically important 1400 level.
Silver may take the lead again once this option expiration and holiday shortened week is done.
But I think gold will tend to do better in a crisis, better than stocks and silver at least. So let's see what happens.
Banks Feel Threatened By the Bullion Bulls - Stills
The support levels in stocks are rather obvious. You might wish to keep an eye on the techs which are following but with some reluctance. The support on the NDX futures is 2100.
The metals action is remniscent of the other failed option expiration stuffing that backfired on the bears as we had noted last week. The difference is that silver has relinquished its leadership role to gold at least for today.
A whiff of cordite has caused gold and stocks and to some extent silver to diverge today significantly, but tomorrow is another day. The call holders will convert to futures and their positions, leverage and will to hold them might be tested.
These markets are riddled with control frauds, but they are the works of men. So while they can be oppressive, they are hardly omnipotent.
