Nothing happened, there’s nothing to worry about. That was yesterday’s message from the trading floor. The second half of Tuesday brought us a strong correction, and today, this movement is continuing on most instruments.
This was to be expected with gold. A reversal should happen here regardless of the circumstances. It’s always good for the technical situation to test the recent crucial resistance as the closest support and that is the scenario we currently have. As long as we stay above the upwards trend line, sentiment remains positive.
A bounce on the SP500 using the upwards trend line shouldn’t surprise anyone. Using that support, the price performed an upswing which broke the upper line of the flag (which is a neckline at the same time).
The US dollar index has also reversed and is about to test the recent support as the closest resistance. 93 looks like a great place for a bearish reversal.