Stocks And Precious Metals Charts - Attractive But Difficult Market

By Jesse of Jesse's Cafe Americain

Tuesday, August 6, 2024 6:51 PM EDT

Stocks tried to extend the rebound from late yesterday afternoon.

And for a time they succeeded quite well, taking back most if not all of the losses from the prior big slide.

But alas, it did not last, and the major indices slid back down to where they opened this morning.

VIX has come down a bit from its lofty peak.

The Dollar gained back some ground.

Gold and silver took some selling.

On the artist X, formerly known as Twitter, I suggested on Sunday evening that stocks would find a low, a place where they could gain a footing, and rally back later in the day on Monday.

And they did.

Further, if one had an itch to re-establish some short positions, they ought to wait for the full recovery of the loss, and then dip back in at the appropriate time and level, slowly.

If you look at the SP 500 futures chart, the key levels have been marked out quite clearly.

This will likely be an attractive but difficult market to trade, full of volatility and big moves with seemingly little fundamental causes behind them.

And at some point I expect the bottom to drop out.

Have a pleasant evening.

(Click on image to enlarge)