Beware: Smart Traders Know This Chart Setup
The markets continue to float neutral to higher today. The SPDR S&P 500 ETF (NYSE:SPY) is trading at $114.43, +0.89 (+0.79%). After a top to bottom drop on the Dow Jones Industrial Average last week of 900 points, the markets are slowly inching up. While most amateurs would think this is bullish, smart traders realize this is a a bearish setup called an in spirit of bear flag. Ultimately, this is setting up for another drop. When will this next drop occur? The charts are pointing to later this week. Possibly as early as Wednesday. The SPY first target is $110.00. The second target is $104.50.
Silver and gold continued to crash today. The SPDR Gold Trust (ETF) (NYSE:GLD) hit a low of $154.19. Last Wednesday, the GLD closed at $173.59. Silver had an even bigger collapse. The iShares Silver Trust (ETF) (NYSE:SLV) hit a low today of $27.41. Last Wednesday, the SLV closed at $38.56. This drop in three trading days was 29%. This is a crash, no matter how you look at it.
While the precious metals hit major lows, the bounce back has been amazing. Both silver and gold are moving back towards the flat line and may turn positive today.
Bank stocks are leading the charge today while technology is faltering. Bank stocks like JPMorgan Chase & Co. (NYSE:JPM) are trading at $30.45, +0.86 (+2.91%). Apple Inc. (NASDAQ:AAPL) is trading at $399.53, -4.77 (-1.18%) .