Dow, S&P higher, Nasdaq lower, Gold and Grains lower

The Nasdaq failed to follow through to the upside today and closed lower. Momentum is still pointing higher but trend is still down. There was some improvement in the advance/decline ratio, at least in the way I look at it. I still think there is possibility of a little more of a bounce to the upside, but the action today was a bit discouraging. However, the S&P and Dow were up nicely. Momentum has turned up in those indexes as well, but the set-up on the Nasdaq looked better. Regarding gold, I’ve been skeptical of this last push up. The action today looks like a move to new highs may be put on hold. Momentum has turned back down on both the daily and weekly charts. The trend is technically still higher, but if the pivot of six sessions ago fails to hold, the trend will most likely turn down. Also the price pattern would indicate a head and shoulders top. The wheat market had a huge reversal yesterday and there was good follow through to the downside today. These commodity bubbles to get slammed hard when sentiment gets too bullish.

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