One of the most useful clues to a market's underlying strength or weakness is its response to unexpected news. A market that doesn't drop in response to a piece of unexpected bearish news is headed higher. A market that fails to rally in response to unexpected bullish news is headed lower. I like to call this the "Dog That Didn't Bark" phenomenon.
This morning police in the UK broke up a terrorist plot aimed at airline travelers to the USA that was just hours from being carried out. This news spooked European stock markets and led to a lower open in the US stock market. I would have expected gold and silver to rally on the news, bonds to rally on the flight to safety, and oil to rally on increased fears about the Mideast supply when terrorists are active.
Instead, we saw stocks rally from the open in the US, gold and silver drop, bonds drop, and oil drop. That dog didn't bark! So I take this response to unexpected news as more evidence that stock prices in the US are headed higher along with bond price, and that gold, silver, oil are all headed lower.