The Volume was higher this week then the previous 4 weeks to the upside... Along with a DOJI candle it appears the markets are undecided what to do. The Slow Stoch is over sold, and I do believe the markets should lower next week however, there is a chance we will see something similar to what happened before the May flash crash where Slow Stoch embeds and the S&P goes higher. The biggest news day should be Friday with the employment situation in the states coming out.
Also I would pay attention to other Central banks and what they are doing to stabilize their currencies. It will also be interesting to see what China will do with the Yuan peg. I view this as a tactic that has been employed by many countries for many years. Today it has become inconvenient for the States politically as it is being blamed for the unemployment rate. I pose this question, if the Yuan value increase 15% (estimate I have seen was 25% undervalued), and manufacturing jobs begin to come back how long will this transformation take? Assume it takes at little as 2 years, will tax payers be happy with every good in Walmart increasing by 15% for 2 years? I don't think so, this peg if removed would be a death sentence for the consumer of the US and for businesses that get parts from china.
Gold/Silver, are still making new highs, it is amazing to see how strong they have been. However, I expected a pull back before gold broke 1300, and I still expect a pull back or sideways consolidation before any other major moves that could take Gold realistically to 1350-1400 over the next 2 months.
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