The Technical Traders View on Gold, SPX and Financial (GLD, SPY, GS)

June 28, 2010 12:12pm NYSE:GLD NYSE:SPY

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

S&P500:
– S&P500 is currently oversold after its 4 day sell off
– This index is trading deep into a support level
– Financial sector and Goldman Sachs (NYSE:GS) tend to lead the market and they performed well on Friday.
– I feel the S&P500 index is due for a solid 2-3% bounce and possibly a 4-6% rally

Watch My Video For More Detailed Analysis and Price Levels

If you would like to get my trading analysis and trading alerts check out my services at: http://www.futurestradingsignals.com/ and http://www.thegoldandoilguy.com/

Written By Chris Vermeulen From The Gold And Oil Guy.com

I am a full time daytrader and swing trader specializing in trading GLD, GDX, XGD.TO, SLV and USO. I provide my trading charts, market insight and trading signals to members of my newsletter service. If you have any questions feel free to send me an email: Chris@TheGoldAndOilGuy.com

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.


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