Key Areas of interest in a very challenging Tape

The relentless volatility in US Equities continues to make buying dips difficult in this ongoing downtrend.  Several attempts at pushing above SPX 4250 have failed in recent days, and Friday’s about-face resulted in prices taking out Thursday’s lows to close down near the lows of the day and week.  SPX has now been lower seven of the last 10 weeks, while momentum is negatively sloped and not oversold on weekly charts.  The key level to hold into next week’s FOMC meeting lies at lows from two weeks ago at SPX-4114 but initially 4157 is important.  Any breach of 4114 has little until 3950-4000, but this area has multiple targets from a Fibonacci projection standpoint that make dips likely buyable.  Unfortunately, it’s going to be difficult to have much confidence in this pullback stabilizing until prices climb back over ongoing two months’ downtrend.  At present, diversifying into areas within the commodity space and/or Pharmaceuticals and Defensive groups like Utilities and REITS make sense.

Gold cycles bode well for additional strength into April before any real pullback

Gold and Silver have come alive in a big way given the recent uptick in global geopolitical tension.  Gold managed to push back to August 2020 peaks, while Silver has lagged in this regard thus far.  My initial target for this rise lies at 2239 up to 2274 before prices settle, and pullbacks into the FOMC meeting this week should represent a good opportunity to add to long positions for further strength in the weeks to come.

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