Not very well really, but better than it could have. The “3rd signal” that I wrote about today that is on the website blog along with downside targets you will want to review was 121.15. The GLD market tested that down to at least 121.08 in the premarket, but then recovered to close at 121.73.
That is still below the May high of 122.24, but getting close and below the June high of 123.56.
Right now GLD looks like it’s in a consolidation after the 9-9-2010 pullback. The action is not “lethal” unless GLD gives way to the third SELL signal 121.15. A move below there that holds on a close will bring gold down to our next target.
In summary, gold could either go either way in the short term. Long term positions should still be held in my view, while trading positions are being tested at resistance on the chart.
Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.
You can review the downside targets for GLD here:Market Timing Blog at SunAndStormInvesting.com
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