A bad week for markets as Thursday and Friday saw heavy heavy selling and we have now broken a very bearish pattern in the index charts which I’ve talked about here for the past week or so.
We could have a ways to go in this general correction but we are due for a bounce that should come Monday.
Bounces in a downtrend are general sharp and large.
Another tip-off to the correction was the movement into large paying dividend stocks which we began feeding into late in the week and I’m looking for more this weekend. So far the best one pays 23% annually.
As for gold, it had a nice week and continues to move away from its double bottom and should act as a safe haven now. Miners are also doing well but they will not hold up in the face of a major market correction so there is no huge rush to moving into those yet.
Gold had a nice week ending up 0.86% but more importantly breaking some major resistance levels.
Gold broke its long downtrend line late in the week on heavy volume which means this should work and not be another failed breakout.
We have some resistance at $1,280 but the base we are breaking out of is much more likely to see us move to $1,300 before we see any rest of more than a few days.
All in all, great stuff in 2014 and just what I was hoping for.