In last nights post I posted the actual chart from Tuesday with the 3 most likely SPY targets, yesterday we hit the most likely, today we are at the second, all based on the F_E_D's mouthpiece, but the real QE sentiment indicator may not be in agreement, opportunities may be near.
The 3 SPY targets posted Tuesday of this week, we are at the second, the 3rd would be a break above recent highs which would not be all that unusual as head fake moves are seen about 4/5 times before a major reversal, that's why that specific target was added.
Here's the SPY on a 1 min chart this a.m. and the upside catalyst? Jon Hilsenrath's take on GDP, in his view it is QE positive which you can guess where that piece was released.
But GLD?
It's not looking as excited. It wouldn't be unusual for GLD to take a dip if this was truly QE positive and be accumulated, the problem is the fastest short term charts thus far are negative and not positive.
I've been very interested in GLD this morning as we've had TWO big news events that could move Gold, 1) the ECB comments and 2) the GDP data, the problem is, both are luke warm for lack of a better word. The GDP data is not that bad and that leaves a lot open to interpretation which can be cast either way. The problem with the ECB talk is that the German Central bank is contradicting it and although Merkel "seemed" to support it, she didn't come right out and support the ECB's view.
I'm looking for GLD to be the tie breaker.
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