Correction in Gold and Silver

Gold broke its long term trendline, which is bearish for Gold. Gold can spike up to test the trend line again but upside is limited unless it crosses that trend line. A lot would also depend upon the greece bail out. any systemic risk can push gold higher

Silver is also bearish. after making a Traingle pattern on the charts .it broke out of that traingle on the lower side. its a text book techincials which might push silver to lower levels

Breakout in VIX

VIX index has broken its current resistance and it can scale higher in current uncertainty about markets and economy.VIX index generally sense the turbulent markets and it can also be called the fear inde of markets.Last time when VIX broke these levels it knocked off good 7-8 % of the market. considering market already around its lows and spike in VIX index can be detrimental to the markets

Silver

A pennant or a triangular formulation may drive silver prices to lower levels. conisdering gorwth concerns and cooling Chinese economy, silver has more reason to test lower prices

Equity markets looming over bear phase

SnP 500 is on the thin red line of 200dma. Technically a close below 200 DMA will ensure prolonged correction and a bear market in near future. So next few days or weeks will determine where are we headed for the future. last few of my post suggest that there may be deep correction in the offing.now the question is what will trigger that, will it be greece or euro default or insane commodity prices, or maybe anemic growth.

Bond Market Suggest another sell-off

Another indicator which suggests a sell off in near future. For last few weeks i ve been looking into a lot of indicators (few of the thm i ve already posted) which are suggesting a decent correction in equity markets.Though im not sure when it will happen and how it will happen, but something big is on its way. I think its time to books some of profits and sit on cash for sometime.

Gold Rally

With problems in Euorpe refusing to subside and dollar continuing to weaken, Gold rally doeasnt look ending anytime soon. technically its following a trend line and has nor closed below that trend line in last 3 months. ideally it should test the highs 1580 and then decide the big move on either side.A close below the trnd line might ensue a sell off but 1470 and 1450 levels would be crucial.