In case you haven't noticed, the 20-day MA crossed the 50-day MA on the daily chart for FEB GOLD on the last trading day of 2004. Since then, the market has broken the December low and is now trading below $430.00. All of this leads me to think that the longer-term trend direction has turned down. $400 is the psychological support and don't be surprised to see that support tested soon.
There seems to be a strong move out of small cap equities as the Russell 2000 is down nearly 6% from its peak on December 31st. It always amazes me how much time it takes for the market to move up and how little time it takes to give back the gains. 16 days of gains vanished in 3 short trading sessions. OUCH!
Dale F. Doelling
Chief Market Technician
Trends In Commodities
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