Tom Clayton writes: Gold is very oversold on the MACD and %R, last time %R was this low was Oct 08 from which prices more than doubled after %B rallied to 0.49, corrected and then pushed to above 1.0.

The VIX is approaching 18.90 and if we look back at 2007, the VIX traded between 18.90 and 30 for several months while the market traded to new highs JUly to Oct before the market started plunging into late December. Not until July, Aug 08 did VIX move above 30.

By Tom Clayton

stemsmexico@gmail.com

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