Markets so quite a pullback this week after rallying from 1738 to 1883. We have not retraced from 1883 to 1840 which is actually nothing more than a pullback after a great rally.

So i’m thinking for now that this is just an overbought pullback before we rally up again to new all time highs. Furthermore i’m seeing a potential very very bullish pattern forming on Dow Jones which tells us that we are going to see a massive rally higher from here.

SPX has MA50 support at 1828 and we MIGHT test this before we rally higher this week – if we break and close below the MA50 I would start to get worried being long stocks – but for now I’m buying stocks on this dip as my view tells me that we should soon start to rally higher again.

However a close below MA50 would make me sell most of my long stocks.

Gold has been rallying a lot recently and to be honest it looks like its a bit too far up too fast – I called the gold rally to occur with not much pullbacks coming , this is what we got so far , overall I’m VERY bullish on Gold/Silver for 2014 and think we rally higher , but short term its a perfect place for a pullback from here. So dont be surprised if gold/silver saw a pullback.

Conclusion: All in all I think this was a pullback before we go up to new all time highs again , 1828 should hold as support. Another massive rally is right around the corner is my view for now. But a break and close below 1828 would make me worried.