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The Technical Traders View on Gold, SPX and Financial

|Includes: FAS, SPDR Gold Trust ETF (GLD), GS, IWM, SDS, SPY, SSO, TNA

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.

-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.

-SP500 is currently oversold after its 4 day sell off
-This index is trading deep into a support level
-Financial sector and GS (Goldman Sachs) tend to lead the market and they performed well on Friday.
-I feel the SP500 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
Can see the video above? click here -

If you would like to get my detailed trading analysis and trading signals please visit my website:

Chris Vermeulen

Disclosure: I am currently long gold and the SP500.