Gold and Silver Ramping Higher

The last two days we just didn't have a really good feeling about the near term potential for the market. Indices are overbought and nothing really reliable was showing up in our scans. As such we stayed sidelined. Yesterday the broader market made a move higher but on low volume. Late in the day the move was predictably faded and we have indices such as the S&P 500 and NASDAQ 100 leaving selling tails at resistance. Gold and silver on the other hand made a strong move higher and this sector may be the area to play while waiting for indices to correct. The two gaps on the QQQQ mentioned yesterday are ominous at this point and we are very likely to see them filled over the next week or two. Longer term a pull back here is quite bullish. If the market would keep going here it would more than likely be an unsustainable move, which would invite sellers. A rest and pull back will refresh and stabilize the trend.