Thursday, October 7, 2010

A few thoughts and important levels

I am afraid I don't have time for a full post today dear readers and I do apologize for the same but here are a few quick thoughts on today's action and the important levels to keep in mind for tomorrow. All said and done, today will as just another consolidation day, thanks to the late day comeback by the bulls where they managed to almost close the S&P into positive territory. The support around 1150 levels held admirably today but if you are bullish, you dont want it tested too many times, as the more it gets tested, the weaker it gets. 1161 remains the immediate resistance on the S&P.

The other big story today was the sharp drop in Gold. Even after the pullback today, it does look overextended over here. The chart still looks bullish but what it needs now is a period of consolidation. 129 remains the immediate level of support which was tested today. No need to panic if you are long on gold here but its time to lock in on some profits.

Take care and good luck!

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