Bearish gold fits the narrative right now - the S&P wants to climb.
Technically, GLD made an inside candle bar today. Inside bars can be bearish continuation patterns if the low of the previous candle (the "mother" candle) can be broken. Or, they can be bullish continuation if the high of the previous candle (the "mother" candle) can be broken. In this situation, I'm looking for a bearish continuation. But, I will wait until the low of the mother candle is broken with a close below it.
Fundamentally, this bearish situation makes sense. SPY (S&P ETF) is doing all it can to break the all time high at roughly 302 ... whether SPY can break above and hold it, is yet to be determined. However, like I was saying, a bearish gold scenario fits this story line. When people are excited (risk on) they take their money out of safe haven equities such as gold (risk off), and put it in riskier investments. Traditionally, gold and bonds are the "safe space" for nervous investors. No nervousness = no "safe space" ... and the GLD sell off should continue. Not too mention, gold is up $200 per ounce YTD; it has room to pull back.
Technically, GLD made an inside candle bar today. Inside bars can be bearish continuation patterns if the low of the previous candle (the "mother" candle) can be broken. Or, they can be bullish continuation if the high of the previous candle (the "mother" candle) can be broken. In this situation, I'm looking for a bearish continuation. But, I will wait until the low of the mother candle is broken with a close below it.
Fundamentally, this bearish situation makes sense. SPY (S&P ETF) is doing all it can to break the all time high at roughly 302 ... whether SPY can break above and hold it, is yet to be determined. However, like I was saying, a bearish gold scenario fits this story line. When people are excited (risk on) they take their money out of safe haven equities such as gold (risk off), and put it in riskier investments. Traditionally, gold and bonds are the "safe space" for nervous investors. No nervousness = no "safe space" ... and the GLD sell off should continue. Not too mention, gold is up $200 per ounce YTD; it has room to pull back.