Gold Silver Reports ~ You could call it a Black Friday as Wall Street was saturated in red and bleeding profusely with the S&P 500 dropping to its lowest since October and temporarily piercing that low but closing above it. If that level gets taken out, much lower prices are in the cards with some technicians seeing the next support level at about 1,750. For the first two trading weeks of the year, the S&P 500 has now surrendered almost 8%.
It turned out that my guess about yesterday having been a deadcat bounce was spot on with oil taking a “crude” toll on equities as the black gold sank below the $30/barrel for first time in over a decade. Adding to the misery were continued fears about economic woes in China.
It looks to be a very long weekend for those who remain invested in equities. Of course, there is certainly a chance that some of the Fedgovernors could come out and try to jawbone the markets backup but, short of Fed Chair Yellen renouncing the recent interest hike and promising lower rather than higher rates, I don’t see a resumption of the old bull market at this time except temporarily in form of dead cat bounce. ~ Neal Bhai Reports
