All of the news out of Europe has sent ole Pigatha Christie tumbling this morning so I thought it might be time to give you some levels to watch in the POSX.
As I've often stated, I think the POSX is rangebound until the formal commencement of QE3. Yes, the dollar should be heading lower but euro concerns keep making it the "tallest midget". Until QE restarts, the yin and yang of these two forces will serve to keep things rangebound. That said, The Pig has been exploring the upper boundaries of its range for the past few weeks. Recent action suggests it may be ready to begin exploring the lower side, somewhere down near 74 and perhaps even 73.50. If anything, there looks to no longer be any concern of an upside breakout that could damage the precious metal trend.
The metals are quiet this morning. Gold lost some ground on the Europe news but is holding around 1600. Silver was well back above $40 at 4:00 am so the EE directed an early morning raid for the third straight day. It rests just below 40 at this moment but significantly above the 39.50 level that I continue to watch. Copper is down a little but crude is pushing 100! Keep a close eye on the greasy stuff today as a move through par will definitely add to the excitement in the PM pits.
Have a fun day! TF
