With the S&P stopping just shy of the MA(50) level, an interesting day lies ahead of us tomorrow dear readers. Will the bulls succeed in taking over MA(50) or would the bears manage to hold off the bulls?
Here is what I think. Mind you, the following thought comes just from a gut feel rather than any charts or other economic indicators. Given this markets tendency to lure and deceive, I wouldn't be surprised to see the markets break the MA(50) level, lure the bulls waiting on the sidelines back in, get the frustrated bears to cover their short positions.......and then go back down again. The market is the greatest temptress dear readers. Woe befall those who fall prey to her alluring charms! Do not get complacent if we break the MA(50) and be on your guard. Consider yourself warned dear readers.
As a sidenote, gold does look good for a slight pullback here which should provide a good buying opportunity. From the metals space, I like TIE if some volume comes in.
Take care and good luck.