Gold Remains in Price Channel

From Chart of the Day:
Today's chart provides some long-term perspective in regards to the gold market. As today's chart illustrates, gold has been in an extremely strong bull market since 2001 with the pace of its uptrend increasing over time. Recently, however, the price of an ounce of the shiny metal has dropped significantly after bumping up against resistance (red line) and is now down $300 in a little under six weeks. This sharp pullback has brought gold back down to long-standing support (green line) of what has been a nearly three-year accelerated uptrend.

Nasdaq Nears Technical Support

From Chart of the Day:

The Nasdaq is currently down 14.5% (2483) since putting in a secondary peak 11 weeks ago. For some perspective on the current state of the stock market, today's chart presents the prevailing trend of the Nasdaq. As today's chart illustrates, the Nasdaq has been and continues to trade within its 17-month trend channel. However, the recent selloff has brought the Nasdaq down near support (green line) which is currently being tested.

Technical Observations

It will be a matter of time before the confirmation of the suspected head and shoulders formation is decided. Here is another perspective of what might be brewing, instead of an assertive move to the upside or downside. Pretend that history rhymes. Here is a chart from Chart of the Day showing the history of the DJIA over select periods, immediately following two "massive bear markets", defined as a decline of 50% or more. The third line shows the DJIA following the less than massive bear market that ended in 2002.