GOLD

Someone asked me about where I see gold yesterday. I think GOLD has support at $867 area so be careful if you are short as it approaches that area.
Also OIL has support around 99.80

Thoughts

Thoughts about yesterday vary in my mind. News of record money on the sidelines had to go to work for the new quarter. As I mentioned the first few days of the quarter usually has a upward bias as funds have to put money to work in the market. Now yesterday rally has to be respected because it came on very impressive volume in deed but we have seen this before were we just ring up a huge day then die again so we must be careful here. Note I am absolutely bearish long term but right here we might be in a bullish consolidation if it is confirmed.
If we are in a bullish consolidation mode today I look for a target on the S&P first to come in at 1388.5 then 1425 which is suggested by the 78.6% rule. We also have a target on the Nasdaq to watch higher at 2383 and this should be watched carefully as this could act as main resistance on the upside. If we go go down in the next two days look for a support around the 1355 area.
Lets see where we are I started to accumulate some shorts through buying SKF long.
Long SKF $104 (1/4 share) for now