Nikkei Follows FTSE and S&P 500 By Showing Death Cross, Gold Climbs Above 200 EMA

Key Points from this video:

1. Death cross emerges today on the Nikkei, which means the 50 SMA has crossed below the 200 EMA on the S&P 500, FTSE, and Nikkei. This strengthens the case that global equities are headed down, although the trendline from the 2009 lows still has not been breached on the S&P 500.The price channel from 2011 has seen its lower trendline breached, though. We may be at a situation that offers some favorable short opportunities for traders, though personally I'm maintaining a bit of a longer-term perspective here and have simply covered some of my long positions while maintaining other ones.

2. The gold/silver ratio has fallen after hitting resistance several weeks back at 79.6. There may be another short opportunity if the ratio can rally to 75.3.

3. Gold has rallied, and is now above the 200 EMA. It has established a pattern of higher lows since July 24. It may be a bit overextended in the short-term, and a pullback to $1150 USD is thus a reasonable expectation. Personally, with a longer-term outlook, I'm content to continue buying at these levels with the expectation that the 2011 highs will be surpassed.

Nikkei Follows FTSE and S&P 500 By Showing Death Cross, Gold Climbs Above 200 EMA