After reacting negatively yesterday to the Fed's benign outlook...

After reacting negatively yesterday to the Fed's benign outlook on rates and the economy, investors today changed their mind and took Wall Street sharply highly particularly on the back of the tech section. And banks - even with such a strong finish XLF (Finance ETF), still finished slightly down. I have pointed out previously that when the S&P broke down late last year it virtually gapped down between 2860 and 2820. Overnight it has finally gone back up and filled that open space. I was anticipating action in this ten day window and the market certainly seems determined to make the most of the opportunity.

Iron ore held its support level but steaming coal finished lower again. This has the potential to have quite serious ramifications so we need to be very aware here.

US dollar came off sharply yesterday but today it retraced the same path. This put pressure back on commodities. Gold went up and had a look at the resistance at $1320 but it proved too strong again and finished back in the support level above $1300. As I mentioned at the beginning of the week, just a bit uneasy on gold at the moment and not helped by our Gold Index (XGD) which continues to hit a rising resistance line. However, the fact that palladium continues to rise is very encouraging for the whole sector - new all time highs hit again overnight.

The highlight in the currency pits was the pound which got caught up in a whirlwind of selling. What I thought was also interesting in the latest session is that it seemed that investors in Germany realised that Brexit - if it ever happens of course - might not necessarily be a good thing for the German economy. Sellers were very obvious in their market overnight with the DAX coming off quite sharply.

XJO continues its boring action. Been caught in this sideways pattern for over a month now. I have favoured gold stocks for months and there have been some fabulous rises although some are getting quite overbought. Been trying to decide if money is starting to spread out in any discernible pattern but so far buying has been patchy in other sectors. Any thoughts on where money might be heading is appreciated.