Global concerns about the increase of new cases of the novel coronavirus in Europe as well as the United States have had a dramatic impact on both U.S. equities and gold yesterday. Both equities as well as gold were sharply lower in trading yesterday. While equities in the United States recovered today, gold pricing on the other hand, continued to decline.

As of 4:00 PM EST the equities markets are closing for the day and still settling. Today’s market action can best be described as brutal, with all three major indices and the entire precious metals complex trading dramatically lower. Currently the Dow Jones industrial average is trading 510 points lower, and currently fixed at 27,147.24.

Over the last few days, we have been focusing upon the FOMC meeting which concluded on Wednesday of this week. We have spoken about how recent changes in the monetary policy of the Federal Reserve have had an impact on gold pricing.

What originally drew me to technical analysis was the purity of mathematics. The use of mathematics in technical analysis to forecast market sentiment, while not always correct, it is a very black and white process.

The most important economic event of the month concluded today. The FOMC meeting concluded today, and the Federal Reserve released a statement along with a press conference from the Fed Chairman Jerome Powell. The clarity in regards to the details of the Fed’s revamped monetary policy that market participants had waited for was answered.

The most important economic event of the month began today. This morning members of the Federal Reserve convened to meet for the first time since the virtual economic symposium was held last month virtually instead of at Jackson Hole.

For the first time since Chairman Jerome Powell gave his keynote speech at the Jackson Hall virtual economic symposium. Were traders and market participants will have a chance to gain more insight as to the recent changes in the Federal Reserve’s monetary policy.

Market participants and investors will focus on two primary factors which could have a profound impact on market sentiment. The two factors are the upcoming FOMC meeting scheduled to begin next week, and the Treasury Department’s report that this year’s budget deficit is nearly triple when compared to last year.

In trading overseas gold prices managed to reap moderate gains as dollar weakness and interest by market participants in the safe-haven asset moved the precious yellow metal higher. In fact, gold futures basis the most active December 2020 Comex contract traded to an intraday high of $1975.20 before retreating.

U.S. equities staged a 180° turn around in trading today. All three major indices sustained major drawdowns yesterday, with the NASDAQ composite moving into corrective territory. Today the tech heavy NASDAQ composite gained 2.71%, and after factoring in today’s gains of a little over 293 points closed at 11,141.5642. To that end, today’s reversal in U.S. equities were impressive.