As you can see in our Decision Point Alert Daily Report below
our Trend Model has triggered a Long-Term SELL signal for stocks.  This
occurs when the 50-EMA crosses below the 200-EMA.  It has been headed
this direction for quite some time so it is not unexpected. Note on the
chart below that the margin on this signal was a 50/200-EMA difference
of 0.01. Not much, but as long as price remains below those EMAs, the
distance between them will continue to increase.

In
the daily chart of the SPX we see prices moving up toward resistance in
the descending wedge.  With our short term indicators still bullish,
this could continue.

Our
indicators are now looking somewhat schizophrenic with the PMO turning
up and moving toward a positive crossover along with other indicators
looking bullish in the midst of a new long term SELL signal.  This new
long term signal gives us a read on the environment in which our
shorter term indicators and signals now operate.  It tempers our
conclusions.  Carl's Learning Center article "Bull or Bear Market Rules" explains this best.

As
we discussed Wednesday, our bullish short term indicators tell us a
move toward resistance could continue.  But our environment is now
bearish and with the bullish descending wedge being the dominant
medium-term pattern, and, ultimately, lower prices should follow even
as we move up inside this wedge.

Bottom Line:  A
new long term stocks SELL signal has been generated based upon a "death
cross" (opposite of "golden cross") of the 50- and 200-EMAs.  Decisions
in the intermediate and short term now need to take this into account.
 Nevertheless, short term indicators continue to be bullish and and
there are now positive divergences on medium-term indicators. So we
have a positive theme developing in a negative longer-term context, but
we should consider it to be a temporary development.

After sharp declines in late June and early July, gold and silver are testing important support zones from their prior lows. The fist chart shows the Gold ETF (GLD) hitting new 52-week highs in late June. These highs did not hold long as GLD declined towards support around 114-116. This zone stems from broken resistance, the May low and the February trendline. GLD remains in a clear uptrend as long as support holds.  Failure to bounce and a support break would reverse the 4-5 month uptrend in gold.

Click these images for details

The second chart shows the Silver ETF (SLV) with a weaker pattern than gold. While gold exceeded its May high, SLV fell short of its May high and forged a lower high. Despite a sharp decline from this lower high, SLV firmed near its support zone around 17. Support in this area stems from the May-June lows and the lower trendline of a triangle. Looking closer, we can see a small consolidation over the last five days. A break below these lows would signal a continuation lower and project a break below the support zone. It ain't broken yet, but we need to watch this in the coming days. The indicator window shows GLD and SLV moving together throughout 2010. Even though gold is more precious and silver is more industrial, these two are still positively correlated.