I don't really have much to say about the SPY. Who really knows where it is headed. All I know is that the market is heavily manipulated, with big movements near the beginning and the end of the day. All I can say is watch the chart. The upper horizontal line represents resistance, and the lower horizontal line represents support. A close above or below the respective S/R lines will dictate where the market is heading for the next couple of weeks. I do notice that we have traced out a lower high on the SPY. A close below the lower support line would be cause to be very defensive.
On another note, I'll make some small observations on GLD and some miners. Although I am still relatively optimistic about GLD and the miners, I must note that I am getting concerned with the chart pattern. If you look at KGC, GG, they have all carved out a pattern of lower highs and lower lows in recent days. A general market decline would definitely cause declines in the miners (and GLD) as everyone harps about the evils of deflation. However I believe that a decline of the miners would not be as severe as a decline of general stocks. I went through the reasons before. Gold (and silver) = Money. However looking in the charts on the short term, it looks like we might continue to have corrections in GLD and the miners, as they are all trading at or right below the orange ascending trendline that I drawn. I also drew in other horizontal and ascending trendlines that represent heavy support due to past trading patterns. We'll see what happens. If the market still has legs, I would expect a decline in gold and the minors should not penetrate the lower support lines too much that drawn on the chart. With a major decline in the markets, then all bets are off, and it is best to wait until the storm settles, or short into the decline.
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