Of all the markets I am watching, the one that pops out at me here is the SPDR Gold Trust ETF (NYSE: GLD) because the price structure has not relinquished much if any of its wild upmove off of last Wednesday’s Fed announcement (about buying longer-dated Treasury paper). Even this morning, amidst the announcement by Treasury that a plan is in place to quarantine, price and hopefully profit from the toxic assets, which should be considered a very “market stabilizing event,” gold prices are holding up well. Purely from a technical perspective, my near-term work argues that since Thursday’s recovery high at 94.36, prices appears to be carving out a high-level consolidation (bull flag type formation) ahead of another thrust that should propel prices to 96.00-97.00 next. Only a decline that breaks 92.00 will weaken the pattern, while a break of 91.50 will invalidate my near-term bullish outlook.



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.