In our 10 a.m. posting to subscribers yesterday, we discussed the powerful up-gap opening in the streetTRACKS Gold Shares (GLD) and the fact that the GLD had hurdled the resistance line of its multi-month bullish price channel. We wrote: "This is very interesting action in the GLD -- to see if the up-gap up here can be preserved…[and] to see if the GLD can hold above its upper channel line (96.67) because usually a thrust above the upper channel concludes the underlying upleg." Forward fast to today's action and what we find is that 1) yesterday's up-gap has been more than filled completely, and 2) the GLD has reversed significantly back below the upper channel line, thereby suggesting to me (technically) that indeed a significant near-term peak has been established at yesterday's high of 97.74. My initial downside target is 93.75 to 92.70 in the GLD.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.