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This afternoon, spot gold is surging higher by $27.00 to $1689.00 an ounce. The precious metal took off to the upside after the Ben Bernanke speech this morning which stated that the Federal Reserve would continue with further accommodating policies. Gold is one of the best indicators that inflation is being created. The SPDR Gold Trust (NYSEARCA:GLD) is trading higher by $2.84 to $164.37 a share. Investors can also easily see the major stock indexes are surging higher today as everything inflates higher. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is climbing by more than 1.00 percent on the session. 

Silver is also catching a sharp bid higher today. The iShares Silver Trust (ETF) (NYSEARCA:SLV) is trading higher by 0.73 cents to $31.96 a share. The SLV is often a cheaper way for investors to play the gold trade. All traders and investors should continue to watch and follow the price in the U.S. Dollar. As the U.S. Dollar declines the precious metals will generally inflate and trade higher

Nenner: Yes, John. The cycle work points to April 19th as the target date for a peak in stock prices.

http://www.forbes.com/sites/johnnavin/2012/03/25/an-interview-with-technical-analyst-charles-nenner/

After a substantial morning sell off, the markets are trying to bounce back. This is the classic buy the dip mentality that still prevails in this market. This shows us there is still retail money clamoring to buy as the institutions distribute. Overnight, China PMI data hit the futures hard. With Europe still a mess and China slowing drastically, the outlook for the U.S. economy is getting clouded. Institutions understand this and are selling slowly as the retail investor is buying. Retail, amateurs always buy the tops and sell the bottoms.  The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $139.23, -0.93 (-0.66%). While still lower, the SPY had been down to $138.75. This is a $0.50 bounce from the lows, all since 11am ET.

Many of the large cap staple stocks are seeing gains today while the commodities plays are falling. International Business Machines Corp. (NYSE:IBM), Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are all higher on the day.

While the top in this market is clearly being formed, the bullish sentiment is so strong that the dips are still being bought. However, the emotional nature has shifted and the buying will wane.

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Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com