Market Pulling Back and Gold Continues Higher

Today was an ugly day but volume was very light.  The details of the government bailout continue to come in and nothing has been approved by congress as of yet.  The market took that news and rising oil prices to allow for a retracement in the market.  While today's move was large, we have not really violated any important support areas; however, the bearish engulfing candlestick today on the Dow was ugly.  I do not have much of an update today.  We just need to watch how this unfolds.  I do not believe that the lows from last week will be taken out.

Gold continued its rocket move higher today.  The $XAU is closing in on the 160 level, which is the 50% retracement level from the 210 high to the 110 low.  This also represents the neckline of the major head and shoulders top breakdown that I alerted you too at the top.  The move thus far has been stealthy and it appears that the XAU will bust back up through that neckline.  It may not happen on the first attempt, but it appears that it will happen.  Let's keep a close eye on that 160 level.