The markets are hovering on the flat line today. This is what is called a pause or consolidation day. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $120.13, -0.07 (-0.06%). A pause or consolidation day tells pro traders that the market may be looking for more upside early next week. This type of pause day occurred on Tuesday, after the massive rally on Monday.

Gold is hanging around an important support level at $1715. If we can bounce off of support here and begin to trend higher it would a signal that gold is uncoupling from the problems in the broader market. The likely scenario is that we head lower with the market retesting the trendline at which point we will be oversold (according to the RSI) and a rally starts.

The markets are taking a beating today on the back of continued European default worries. In addition, the Super Committee in the United States has failed to agree on any budget cuts. The SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading at $114.62, -3.14 (-2.67%).

European news leaks continue to whip the markets up and down. Early in the day, word of a major vote in Italy on a budget drove the markets higher. Hopes of a significant resolution to the Italian debt problems circled in the air. While Berlusconi won the vote, the parliamentary majority was lost. This means any sort of political effort towards a major bailout deal could be a tough fight.