Gold is now trading near a major support level zone at its 50-day moving average. At the same time, the US dollar index is now overbought while being in an intermediate-term downtrend. Silver is pretty much in the same position, as it has been trading very closely to gold.

Almost all markets around the world have taken on an overbought condition two weeks ago. Most are working that off by trading in a very narrow range, as I demonstrate with the EWG ETF. The S&P 500 also has support under it with a convergence of its 1/3 retracement level and its 50-day, 150-day, and 200-day moving averages all in the same area.

It overall looks to me like markets are near support, but they will likely continue to go sideways this week.

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