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
About Chris Vermeulen
Chris Vermeulen Archive
|08/02/2012||Silver Suffers the Most from Bernanke||story|
|05/16/2011||Is a Stock and Commodity Meltdown about to Take Place||story|
|05/12/2011||Market Sentiment Reaching Extreme Levels for Gold & SP500||story|
|05/05/2011||Parabolic Moves are Only Temporary for Silver and Gold||story|
|04/21/2011||Is it Time for a Pullback?||story|
|04/18/2011||Equities Don’t Follow the Dollar Index So Hold On!||story|
|04/04/2011||The U.S. Dollar’s Impact||story|
|03/31/2011||Are Stocks and Commodities About to Start Another Rally?||story|
|03/24/2011||Another Do or Die Point for Equities and Gold – Get Ready!||story|
|03/14/2011||It’s Do or Die Week for Equities and Gold||story|