Over the past few months, the market indices Dow Jones and S&P 500 have halted their continued gains over an extended period of four years and have begun oscillating, this is following the announcement by the U.S. central bank regarding tapering of quantitative easing. The Dow Jones has been oscillating at the 15,800 - 16,600 level and the S&P 500 at the 1,780 - 1880 level. Currently the Dow Jones and S&P 500 are sitting at their 52-week high levels which is the peak of their oscillation intervals. Simple analysis would indicate that markets would not move higher in the short run and therefore we can expect a small short term correction. Today's trading activity shows more of the gains shifting towards precious metals and away from other sectors, indicating that there may be a short term market pullback and a rise in prices for gold stocks may follow.



*NOTE - This post is a reiteration of my post earlier today which was set as another blog due to technical error.