The markets will be fairly quiet during the session today in our estimation, simply because there are not many things as far as announcements are concerned that will move this market. Ultimately, we believe looking at the charts will be the best way to go but we have seen some significant moves over the last couple of days.
We believe the European indices will offer value given enough time, but we need to wait to see whether or not we get some type of supportive candle. If we do, we believe that the DAX, the CAC, and most certainly many of the other peripheral indices should continue to offer buying opportunities. They have all been sold off significantly lately, but we do not believe that this selling pressure will last forever.
Precious metals had an interesting session. Most likely the one that has caught your attention is gold. We believe the gold will continue to rally until we get towards the $1150 level, an area that was previously support, but now is resistance. With this, we believe that gold will get a much deserved relief rally after a massive sell off. However, we believe that the longer-term move will be to the downside.
Ultimately, we think the liquidity will be an issue for the next couple of weeks, so keep in mind that position sizes should either be smaller, or you should be looking towards the smaller time frames as far as trades are concerned. Big moves are very unlikely.
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