Precious Metals at Resistance

I used to look at the world like this, because it used to work –

The Euro was in a narrow trading range for a few weeks and has now broken out.
Buy the breakout was my old mindset…



Now I see this –

The Euro (6E Z0-D) is in a potential two-step rally into significant daily resistance at a key today. There is no way I would buy here, I would wait for a pullback into logical support and look for an entry.



Asset classes are now so closely correlated that the movement of the Euro has a material impact on other assets.

The S&P 500 (ES Z0-D) is now retesting the key Time/Price High of August 5th. This is a potentially bearish setup forming, with prices stuck here at either a double top or a move to 1,146 setting up a reversal pattern. Next Monday and the 25th look like key dates.



Silver (SLV) is now at critical resistance. It was a nice move off the breakout above $18.25



And Gold (YG Z0) has hit its first upside target. It looks like the date is September 29th



Gold Stock ETF (GDX) broke above critical resistance today. Again, I used to be interested in buying the breakout, but you can see how the price was driven higher right as the underlying commodities are running into upside targets. The magnitude of any pullback will dictate my next actions. A weak pullback will be bullish.