Thursday, October 7, 2010
Bulls testing Range support
There was a range prior to the Breakout on Tuesday, that range is serios support and the bulls are launching a bounce from there. There's a 1 minute divergence on the SPY. This is to be expected, especially at a range that held for over a week. GLD is also bouncing off a small positive divergence on the 1 min chart, but it looks like it's turning negative now (just starting to). The SPY is also starting a negative divergence around the top of this bounce. Next support level for the SPY at %115.15-$115.20
1 comment:
GDX is sporting one UGLY candle so far today.
I'm thinking this could be IT for gold for a good while. I'm not a big Elliot Wave fan, but we do have a clear 5 waves up from the bottom nearly a decade ago, sentiment is extremely bullish, and 3C confirms the long term distribution of GLD.
If this is the end of at least this segment of gold's bull market, we can expect a long 50 to 61.8% retracement of the entire bull move. This would wring out all bullish sentiment and perhaps allow gold to resume a bull trend after a major correction. But I am getting ahead of things.
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