The Day Ahead - August 10th

Tomorrow will be a more telling day in the market.  Now that Fed Day is over and everyone has digested the info from the last week, things should start to become slightly more sane.  The market was in an oversold condition heading into the week, and after the drop, hold and rally today, there is much anticipation for a rally heading into the rest of the week to work off the oversold conditions.  The fact that most people are expecting a rally, is what really makes me scared to believe it.

Another story to watch is to see where gold goes from here. It has rallied furiously the last couple days, yet today Silver lagged behind.  GLD was up almost 1% to close over 168 (after hitting an all time high of 173 after the fed announcement) and SLV didn't participate in the rally and was down over 4% when the rally took hold.  Either SLV is going to make a move to catch up, or there's going to be some profit taking in gold.