GLD

GLD is a bit tough to read right now, it looks similar to the market update I just put out in a number of ways, however there are some unresolved divergences that GLD is in the middle of.

I would say the highest probabilities are for a short term move up, unlike the major averages that have a pretty good picture of the bigger picture (as much as you can get from 3 days trade), GLD is not so clear in that respect.

The Gold mini futures actually gave an excellent signal on the 1 min chart that has been too spotty, but a strong signal will pop through that. Gold was in line with 3C, not showing anything interesting until it went deeply negative and gold followed, however this is only a 1 min chart, that move to bring gold prices down can be used to accumulate a position at cheaper prices and with more supply available as sellers enter the market on the move down.

 The GLD chart at 1 min shows the positive divergence, especially in to the afternoon yesterday and GLD has moved up, note the drop in price and the 3C positive divergence to the far right.

The 5 min chart shows a negative divergence, price falls slowly from there, it looks like some smaller positives at extreme lows. I'm interested in whether this 5 min chart's 3C turns up validating a positive divergence here or whether it moves lower.

It seems by the intraday action, at least a short term move up is in the works, after 5 mins in GLD it gets very inconsistent with the 10 min chart looking extremely negative, the 15 min chart looking fairly positive, the 30 min inconclusive and 60 negative.

So back to the futures to see what they offer...

 Gold (YG) 15 min is a perfect example of a stand-off, the negative divergence while price is flat send price down (red arrow on price), the equal size positive divergence while price is flat at the lows sends price up to almost the exact same point, so two divergences of roughly equal size producing roughly equal moves, that doesn't give us a lot of information, but it may explain something...

 The 30 min gold (YG) chart does the exact same thing, leading negative at a flat area in price with price following the negative divergence lower, then a positive divergence at the flat area of the lows and price responds by moving back up, it's difficult to say whether the positive divergence is more important or not.

At the 60 min chart the action is negative on the chart, so again we are kind of stuck with the only signals sticking out are some positives on short term timeframes, even the futures are not giving us a clue in the intermediate to longer timeframes, which may explain why the GLD charts are so screwy in those same timeframes.

Oh and by the way, that 5 min GLD chart which had a question mark as to whether it would put in a positive divergence or not, did not.