Another look at gold through GLD, the SPDR Gold ETF chart. The recent post last week held on to the bullish belief that GLD would find an intermediate bottom, but that belief is hanging by a thread as GLD took a leg lower instead, and it is currently testing the daily TDST Support level at 120.73. Since TD Buy Countdown @13 did not respond as a GLD bottom, TD Combo Buy takes its place, and it has been notated one count short of a “13”. To achieve a TD Combo Buy “13” today, GLD must register a lower low from 120.77 and close no higher than 120.94. However, this will place GLD under TDST Support. This will be acceptable to keep the bull case alive, but there will be a serious consideration to cut out if there are two consecutive lower closes under the daily TDST Support at 120.73. There is no chart presented, but it’s worth noting gold futures hit a TD Buy Countdown @13 two days ago and trading above TDST Support at 1251.80. It is in the same predicament as GLD from a TD perspective. Longer term, GLD appears to be bottoming from the December 2013 lows.
The weekly charts are included today and the monthly charts will come next week. At the close of today, it is likely all short and long term timeframes for the major indices will be bullish. Even with a rally that is characterized by low volume and low breadth, prices can still levitate. Tom DeMark’s TD Sequential is known for market timing, but the most underrated component is the power it holds as a risk management tool. It gives defined levels of when to stay in a trend, when to exit, and when to be cautious. Right now, equity markets are bullish and everything will be measured again next week.
S&P 500 (SPX) SHORT TERM OUTLOOK: BULLISH
Flip to neutral if SPX closes below 1909.64.
S&P 500 (SPX) SHORT/INTERMEDIATE TERM OUTLOOK: BULLISH
Flip to neutral if SPX closes below 1900.53.
S&P 500 (SPX) INTERMEDIATE/LONG TERM OUTLOOK: BULLISH
Back to neutral if SPX closes below 1878.48 next Friday on June 6th.
S&P 500 (SPX) LONG TERM OUTLOOK: BULLISH