The Technical Traders View
on Gold, SPX and Financial

by Chris Vermeulen, GoldAndOilGuy.com | June 28, 2010

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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.

Gold:

1. Long term trend is up and I am currently long gold but feel a sharp correction could happen any day.
2. Price/Volume action on gold is bearish short term
3. We took some money off the table on Friday into the strength
4. I am protecting my long position using a stop around the $1240 area
5. I still like gold and hope it rallies, but if it turns around I will be in cash until the correction is over.

SP500:

1. SP500 is currently oversold after its 4 day sell off
2. This index is trading deep into a support level
3. Financial sector and GS (Goldman Sachs) tend to lead the market and they performed well on Friday.
4. 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
- http://www.thegoldandoilguy.com/articles/sunday-june-27th-gold-spx-video/

Copyright © 2010 Chris Vermeulen, editor
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Disclaimer: I am a trader and newsletter writer specializing in the price of gold GLD ETF, Junior Mining and Energy Stocks listed in the US, Canada and Australia. Please visit my website for more information. http://www.GoldAndOilGuy.com This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Contact Information

Chris Vermeulen | GoldAndOilGuy.com | Collingwood, Ontario, Canada | Email | Website