Some midday charts:
S&P 500 – For the past few days I have been talking about the pattern the S&P 500 has been stuck in. The S&P bounced downward from the 50 day moving average after a disappointing announcement from the FOMC. The market has quickly dropped over the past day and a half and looks to continue its trading pattern:
Gold – Gold is down today as well. This is a bit surprising as gold is usually viewed as a “flight to safety” asset group. Most likely we are seeing short term traders move out of gold and into long term US Treasuries – hoping to get in before the Fed reallocates their $400 billion portfolio, aka Operation Twist.
Gold has also been in a trading pattern this year and may be at a likely pivot point: