Sunday, November 22, 2009

Stock Market Update - November 20, 2009

The hourly chart for the Dow shows money flow (blue line) and the price indicator (green line) moving back down into the cycle low for the short term.

We may have a few more days of price weakness based on the money flow indicator (blue line with price). Only question is how much weakness?

The dollar is looking to put in some type of bottom ... not sure if it is a short term or longer term bottom.

I wanted to point out a few charts for gold. Gold has not reached new highs when priced in Euros. This is something we should watch and may point to the direction for a full turn in the dollar when the price of gold meets its last high priced in Euro ... this would be a double top.

Same goes for gold priced in yen. It has not made a new high since 20008. This will be interesting when/if gold reaches the old high ... will a double top be put in and a turn in the dollar be the news of the day ... if so equities will weaken.

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