The Technical Traders View on Gold, SPX and Financial

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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.

Gold:

  1. Long term trend is up and I am currently long gold but feel a sharp correction could happen any day.
  2. Price/Volume action on gold is bearish short term
  3. We took some money off the table on Friday into the strength
  4. I am protecting my long position using a stop around the $1240 area
  5. I still like gold and hope it rallies, but if it turns around I will be in cash until the correction is over.

gold

SP500:

  1. SP500 is currently oversold after its 4 day sell off
  2. This index is trading deep into a support level
  3. Financial sector and GS (Goldman Sachs) tend to lead the market and they performed well on Friday.
  4. I feel the SP500 index is due for a solid 2-3% bounce and possibly a 4-6% rally

sp500 at support higher high

Watch My Video for More Detailed Analysis and Price Levels
- http://www.thegoldandoilguy.com/articles/sunday-june-27th-gold-spx-video/

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About Chris Vermeulen

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