The economists are still failing to grasp what is taking place. The job growth that has surprised everyone is all PRIVATE sector taking the rate from 7.9% to 7.7%. This does not impact government jobs that we will start to see be reduced. This is not a fantastic number, but it illustrates how the pessimism with the Dow making new highs remains. People are just not grasping the international implications. The Roaring ’20s took place entirely because capital had shifted to the USA for World War I. That inflow peaked in 1927. This is what we are looking at right now. Capital inflows because of turmoil in Europe and Japan.
A close today for the Dow Jones Industrials on spot above 14280 should signal further upside into next week where we may see a temporary high then form.
In gold, we have a range of 1581 to 1561. A close below 15648 today will signal further selling pressure into next week. Keep in mind, gold has not been broken as yet. We need at least a weekly closing below 15225 to signal that for right now.