I’m on vacation this week and my column will resume next week but I just wanted to share a couple of thoughts with you. I’ve included a long term view of the Dow, since it has been leading to the downside. As you can see, the next real support comes in around 10,680 which was the summer of 2006 low. Long time readers will recall that was the low that came in after a euphoric May 2006 high on multiple time clusters. As euphoric as May 2006 was, doom and gloom characterized the low. If we were to get there this week, notice the sentiment and compare it.
In other markets, we have important time windows coming in gold this week. As you know there are important inverse relationships with the dollar, yen and the intermarket relationship with crude oil. This can affect stock prices as well.
