Hi guys after Friday rout there are new developments in stock market indicies. Last week price action on AMEX:DIA formed bearish reversal pattern buying climax above upper megaphone pattern line at the top of rising wedge. This rising wedge is 5th Elliot wave which is signaling trend will reverse soon.
As you can notice in chart last week realized volume was relatively big and volume week ago last week was rather small. Thats the signs that bears taking control significantly in recent days. I expecting this week breakdown bellow megaphone upper line and begin forming corrective wave (a).
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@SilverChad, Good question.I disclose my chart...
In general i mean its bullish for gold and silver but primary driver will be inflation hedge and USD and Trasuries will be preffered as save haven by investors. Because with rate hike USD will be more attractive and for FED its good way how to reduce its debt and drive inflation in future. So as you notice in the chart i expect simmilar scanario as in 2008 Financial crisis.