Another drop in stocks, gold up

Stocks indexes had a hard time today mounting any kind of rally. At the end of the day the bulls gave up again and the major stock indexes closed sharply down. I am including a 60 minute chart of the QQQQ (Nasdaq 100) to show the pattern of rally atempts and then sharp sell offs, all within the context of the shorter term downtrend. The double stochastic in the subgraph tracks the rythm of the movement very nicely. Even if one only trades off the daily charts, it can still be helpful to view the next shorter, as well as the next longer time frame. Intra-day charts can be seen easily, and for free, on many websites.
The daily chart above shows that even with the selloff today the trend channel is still trying to hold up. Prices did close below the three day pivot (yellow dot), which is not good. Momentum is still oversold and will probably turn down more agressively if there is followthrough to the downside on Monday. I am standing aside on swing trades. This market is very whippy right now, which makes it great for daytrading, but difficult to take any overnight positions. It seems there is very negative sentiment right now, with fundamentals being reported to confirm the down move. Conditions look ripe for a snap back rally. The move today put that on hold for the moment.
Gold had a nice upmove today. There is still a wide trading range, so would like to see the trend turn up and then I’d be more inclined to trade pullbacks from the long side. Momentum is oversold and back to the upside. Hopefully this move will take out the previous swing point of two weeks ago. I would hold long with a close stop in case the test of that swing point fails, as it does so often with gold.

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