Retest Coming

And there's some chance we could fail
But the last time someone was always there for bail
--Toad the Wet Sprocket

One of the rougher weeks for stock markets in recent memory quickly finds the SPX retesting the February lows. On a closing basis, we're already there in the 2580-90 zone.

Friday's close also finds the SPX sitting right on top of its 200 day moving avg. The 200 day is where the index bounced on an intraday basis last month. A decisive drop thru the 200 day early next week, particularly if the decline breaches the 2530ish Feb intraday low, might ignite some fireworks.

Meanwhile, the gold complex is perking up. The metal itself is rallying toward the top of the recent channel. The chart below has a cup-and-handlish look (bullish). Miners are also showing signs of life.

Should the it scamper thru 1360ish, the yellow dog might be off to the races.

positions in SPX, gold