Futures are down a little this AM, as international markets and international futures are down also. This is reflected in The Dow World Index, which is down –0.59% as of 7:27 AM.

On today’s Economic Calendar, we have the Producer Price Index at 8:30 AM, and Industrial Production at 9:15 AM. Neither of these is expected to cause any shocks to the market, as capacity utilization is not far off lows, and when combined with the PPI should give no signs of pending inflation.

Meanwhile, Gold continues to soar, whether due to safe haven bets, inflation fears, or physical utility as an industrial commodity or usage by cultures for jewelry. It’s important to note that it also has some seasonality, and now is the season. At $111.63, GLD is climbing toward my target of $120 that predicted earlier in the spring of this year when it crossed the $94 threshold. I can see that target taken out fairly quickly, perhaps by year-end.

My Chart Pattern Index is overwhelmingly bullish, with 95 % of NR 7 candle patterns showing bullish breakouts, and a large number (1,935) of patterns awaiting breakout.

On my best performing patterns for 11/16/09, the majority of patterns displayed are “Three Inside Up”, which are 65 % probability bullish reversals.

I’m seeing the bull continue. I have to admit, I have been unexpectedly cautious over the last several weeks, and I missed something very obvious on the SPX chart. I had warned of rising prices on declining volume, and had pointed out the declining daily volume bars on the chart. However, if you use On Balance volume, (see Wikipedia Definition), you can see the accumulation in volume is very positive and supports the run-up in price.

Oh well, it goes to show you, sometimes things which appear on charts as obvious may not be so obvious. So I’m adding On Balance Volume (OBV) to my daily charts in the future. I have always used OBV on my day trading screen , but it never occurred to me it would be useful on the daily charts. Now I know it is.

Nevertheless, I’m continuing my cautious stance on long positions, as @WeeklyTA has charted a rising broadening wedge in the SPX and DJIA.

I’m not taking on any new day trading positions now. My emerging markets swing trade choices have paid off very well, and mostly all are up about 6 % already. I am paper trading E-Mini futures (ES_F), for the next several weeks — I may start trading this depending on how my tutelage period goes. Right now, I like what I see with the potential.