Diamond Pattern Forming In Dow

By Jeff Pierce

A McClellan Oscillator barely clinging to a positive close,  a diamond topping pattern forming on the heels of a major run being forced upon the market by the resolution to the Fiscal Cliff –> markets feel toppy, bottom line. I continue to stress booking profits and reducing long exposure at this time until new highs are made.

 Negative divergence

Gold is in a wedge right now with support holding but it's impossible to say which way this chart is gonna go. My best guess is down because that's the prevalent trend and I personally think Gold is going to revisit the $1200′s before it makes new highs. Before you call me crazy I was saying Apple was going to see the low $400′s (and possibly below that) when it was in the 600′s.