Bearish Fears Project a Bounce Sometime This Week

The put/call ratio has once again turned overly bearish as traders reacted to the sell off at resistance yesterday. Technically the indices are set up for a good short, but considering other factors such as unsustainable levels of bearishness and the approaching end of the month buying window, there is a potential for a short covering rally to ensue this week. We could very well see prices dip back down to their August lows but it is likely we will find support there. Gold is either basing for a move higher or is under distribution and ready to reverse course at long time resistance one more time. Technically it appears that the miner stocks are basing for a move higher, but until they make their move out of their current intraday ranges we won’t know for sure.