Stocks at or Near Short Term Low - 10/4/09

Stocks

Stocks appear to be at or near a short term low. The Dow has pulled back to the 50 day moving average and trendline support. Most likely, this will bring an upmove that will test the trendline connecting the September tops(shown on chart). That could happen by the end of the week. A close above that trendline should bring a test of the September 23rd top. A close below Friday's low would be bearish.
Chart: Dow Industrials three month chart, Click to enlarge.


Gold

Gold completed a zigzag at the 9/25 low(one trading day before the 9/27 - 9/28 swing cycle date) . It will probably move up along with stocks this week.