So, the S&P seems to be holding that 1120 level in trading (even though the futures dipped below). With gold, I didn't think the gap (formed between 8/7 and 8/8) was necessarily going to be filled, but now it is getting pretty close. That move coincides with a nice trend line that dates back to earlier this year (late April) and that scales the peaks of the congestion area that formed right before the gap in question. I haven't done anything yet, but the correction is starting to play out in a way where I am debating adding to my position.
UPDATE (4:28pm): Well, gold really got the snot kicked out of it today. Watching the last two days is exactly the reason that you don't want to try and catch a falling knife. There were support levels on the way down that could have been potential buying spots...and they were breached. This is why I try (and you need) to have a little patience before jumping in, if the instinct is to buy. And, not to buy your whole position all at once. If I were guessing, I don't think the slide is over until next week, but I'll let the action over the next few days confirm that for me. Why the drop? More sellers than buyers I guess :)
