Tuesday, August 23, 2011

GLD Sees Some Profit Taking and Markets Bounce

Gold sold off overnight and gapped down on the open. Profit taking in gold was offset by buying in the broad equity markets. Is the correction over and the gold move done? IBD seems to think we are in a confirmed uptrend following today's market action.... We need more evidence. Gold sold off on high volume but has many layers of support as depicted on the GLD chart below. The relief rally in the SPY lacked volume IMO. We seem to be rallying in anticipation of Ben Bernanke's Friday speech, but I doubt he can propel this market back into bull mode.

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