The Technical Traders View on Gold, SPX and Financial
It was a non stop sell off last week in equities as the SP500 sold down 4 days straight with a small move up on Friday. While investors were cashing out of stocks, we saw that money move into the big shiny yellow safe haven – Gold.
I have put together a short video showing you how I see the market and what I think is likely to happen this week for gold, stocks and financials. But here are my Cole’s Notes version incase you cannot view the video.
– Long term trend is up and I am currently long gold but feel a sharp correction could happen any day.
– Price/Volume action on gold is bearish short term
– We took some money off the table on Friday into the strength
– I am protecting my long position using a stop around the $1240 area
– I still like gold and hope it rallies, but if it turns around I will be in cash until the correction is over.
– SP500 is currently oversold after its 4 day sell off
– This index is trading deep into a support level
– Financial sector and GS (Goldman Sachs) tend to lead the market and they performed well on Friday.
– I feel the SP500 index is due for a solid 2-3% bounce and possibly a 4-6% rally
Watch My Video For More Detailed Analysis and Price Levels