So far today, the weakness in the SPDR Gold Shares (GLD) has not inflicted significant technical damage to the Aug-Sept uptrend. To do that, the GLD must break back beneath today's low at 126.61-- and follow through to violate the prior significant pivot low at 125.58.

A breach of 125.58 will inflict meaningful damage to the dominant uptrend, which should trigger additional selling pressure that drives the GLD to test and likely break its Aug-Sept up trendline, now at 124.80 within a developing correction of the the two month, 12% advance. Barring a break of today's initial low intraday low at 126.61, however, the bulls will remain in directional control

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.