We are in a non speculative, non frothy equity market. Retail has packed their bags and will return after the cliff resolution, no matter what the price. But non-retail is sensitive to price and they are not dumb enough to chase a fundamentally weak market like this one to near new highs. Only retail does that. In a retail-less market, there is only so far a market can go higher on just momentum without fundamental backing.
The disciplined pros will not chase here, and only retail or desperate hedge funds will buy higher. So that leaves very few buyers willing to pay up, which means the market has to go back down to entice the pros to buy. Ok, so we have the automated money coming in for early December, but that will last maybe 2 days max. After that, the market is on its own. And if we are anywhere around 1425-1430 at that time, it is an easy sell.
On gold here: this is a hiding place for those that want to be in the market but are afraid of equities. I see very little upside and plenty of downside for the next few weeks.
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