After the market rallied on Tuesday and took out the June 10, 2013 pivot high, the market accelerated downward when the FOMC made its announcement on Wednesday. This abrupt market reversal should not be a complete surprise to all market participants since the advance/decline line and the new high/new low indicators were alerting us to remain cautious and beware of head fake("The Market Decision").
The precious metals also made a quick turn on their price actions. The price of gold dropped more than $70 or over 5%, and silver loss $1.74 per ounce or more than 8% in a single day. The gold ETF, GLD loss more than 5% after it has been slowly lifting off from its consolidated support level near 131("Golden Moment Again?").
Now that the head fake has occurred, will the market continue to sell off and the precious metals lose their shine? In the following video, some possible scenarios and price levels for the SP500 and the GLD are presented.
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