Wednesday, October 13, 2010

3% S&P Correction, No Resistance For Gold

Jeff deGraaf, Institutional Investor's top ranked technical analyst told us that patterns in the chart of the S&P suggest that “we’re due for a consolidation but it’s not a big deal.”

Looking at the technicals he explains that “90% of issues are trading above their 50-day average and that’s happening in a neutral trend. Overbought conditions in neutral trends tend to work.”

We know that’s confusing so we asked him to bottom line it. He told us “I think it’s a 3% correction at worst. The market just wants to bide some time.”

http://www.cnbc.com/id/39632508

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