Commodities Find Support
Although the market has been experiencing sharp declines recently, commodities have taken a back seat to cash this month and have taken a strong hit themselves. This pressure continued into Monday morning, but as expected, it soon began to abate. Gold and silver both began the regular trading session with strong downside gaps. These moves served as a flush for the larger selloff and intraday lows held with the 10:15 a.m. ET correction period. Gold settled at $1,594.80 in New York after hitting a low of $1,535 in overnight trade. Silver settled at $29.98 an ounce. We should continue to see this selloff find a footing this week with choppier trade on the 60 minute time frame and a move away from "free fall mode".
Nasdaq Composite (Figure 3)
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.