Keep in mind that the gold markets have a lot of different things moving them around at the moment, not the least of which would be the geopolitical concerns when it comes to the war in Ukraine. 

Gold markets went  back and forth on Wednesday to show the $1920 level as support yet again. This is a market that has been going sideways in general, and therefore I think we are stuck in the same area that we have been in for some time.

It is also worth noting that the 50-day EMA is sitting at the $1910 level and seems to be rising a bit. The $1900 level underneath is the bottom of the overall range and an area where you would expect to see a lot of buying pressure. As long as we can stay above both of those levels, then it is likely that we could see a gold rally. However, there is a lot of resistance above that comes into the picture and causes problems as well, so please keep that in mind. Gold has been noisy more than once, and it looks as if the market is trying to figure out where to go next as far as a bigger move is concerned.

Above, we have significant resistance at the $1950 level, and then again at the $1970 level. Both of those areas could be difficult to get above, but if we do break above all of that, then it is likely that we go looking to the $2000 level, which is a large, round, psychologically significant figure. That being said, the $2000 level is an area that has been blown through rather quickly in the past, so I think that any resistance in that area more than likely will be of the psychological type, and not necessarily of the structural time. In other words, we could slice through it again.

Keep in mind that the gold markets have a lot of different things moving them around at the moment, not the least of which would be the geopolitical concerns when it comes to the war in Ukraine. There is a serious concern when it comes to the lack of growth around the world, and some people are choosing to protect their wealth by purchasing gold. That being said, the higher interest rates do keep a little bit of a lid on the gold market, as it is much cheaper and easier to own bonds than it is to pay the storage fee when it comes to gold.

Start counting on choppy behavior in these markets

The S&P 500 has pulled back during the trading session on Wednesday to reach the 4600 level before bouncing a bit. At this point, the market looks as if it is trying to hang about and decide where to go next, as the market had gotten so overstretched. The market remains very noisy, but the fact that we found support at a previous resistance barrier is a good sign.

If we were to break back below the 4600 level, then we could go looking towards the 4500 level. The 4500 level is an area that a lot of people will pay close attention to and an area that could kick off a bit of a selling opportunity. That being said, the market is likely to see a lot of noisy trading in this area, especially as we have the jobs number coming out on Friday.

The market has been parabolic for some time, and I do not trust these types of moves. However, I also know that the US indices are not made to be shorted, because the markets are measured via a market cap, and therefore just a handful of stocks can send this index higher, regardless of what is going on underneath. In fact, it is quite common to see the index rally as huge swaths of stocks decline. That was the case before we started selling off quite drastically, and therefore you should watch some of the smaller stocks for a bit of a secondary indicator. Nonetheless, this is a market that certainly looks as if it is trying to find its footing, and a couple of days going sideways could work off a lot of the froth in order to make it a bit more viable of an uptrend.

The overall health of the market is questionable, simply because there are a lot of moving pieces out there that could suggest negativity, but quite often the market simply ignores this. I think we may be in one of the situations again because there is a huge disagreement amongst bond market traders and stock traders as to whether or not the Federal Reserve is going to save everybody again.  I think the only thing you can count on is a lot of choppy behavior. If we break down below the 4500 level I will reassess the situation.