Hello Everyone,
Quick comments: Yesterday the SPX pulled back and found support exactly at the 61.8% Fibonacci retracement from the Jan 24th lows to the Feb 2nd highs (4595 - 4222). I stated that one could have went long there with a tight stop and as you know I've still been leaning that the market would form a higher low and not go back and test the Jan lows at this time. Then of course overnight we got the Ukraine news that spiked futures very strongly in the morning. I've commented on this many times, it's funny how often you see a setup in the charts, and then get the news event afterward.
Precious Metals, were a bit overbought with Monday's close, however they logically got hit with the positive market news. However thus far the pullback on GDX found support at the 9 day EMA, which is fine. As I've been stating, a pullback is fine as long as it doesn't totally retrace the recent gains.
The market is in the middle of a range now: yesterday's lows is major support. I still lean to more upside baring surprise news. For the SPX it would now be best to have a breakaway gap over resistance (which I'll show on the 60 min chart.
Matt
