GLD follow up

Here's the last major GLD analysis from last week. 


In that analysis we used the Trend Channel as a potential upside target and stop around $34 and we haven't seen those prices yet.

 Here's the complex top mentioned and their tendency toward symmetry which this current rally would provide. There's also an ascending wedge into the bounce which is not good for the bounce. Today's gap up may form an evening star reversal, although it's a but too early to say.

The 15 min 3C chart falling apart into the edge as we'd expect to see. There is the possibility of a false breakout , although today could also be considered as such being the majority of technical analysts still haven't caught on to the fact that the market has caught on to technical analysis and knows exactly what all technicians are thinking as they have been taught for nearly a century. Wall Street also has an open boo of orders so they can see when that scenario is unfolding and wreak havoc to the obvious price patter. The thing is, once that volatility of tripping stop and limit orders in an effort to give the reversal a juiced up start, the technical patterns tend to remain useful/meaningful, you just need to be aware that the HFTs will bounce the shares back and forth as much as possible to generate volume x spread which equals their profit not to mention order routing rebates according to volume.

This is the reality of technical analysis and most technicians are entrenched in that thinking, The market changes and since the dawn of the Internet, it's changed radically and for the most part, that isn't good for technicians. Some brokerages offer real time pattern recognition software for free with their accounts, I personally can write a simple PCF/EasyScan to identify multiple technical patterns. On Wall Street where micro-seconds and investment in the best technology available, how much easier is it for them to find these pattern and then to have the ability to see the complete order book, they absolutely know when it's a good time to create a head fake so long as technicians keep acting like sheep.

Ultimately, GLD's chart is on track from the last analysis and it appears we will see downside soon in GLD.