Technical Traders View on Gold, SPX and Financial

Source: Chris Vermeulen, Technical Traders (6/28/10)

"It was a non-stop selloff last week in equities. . ."

It was a non-stop selloff last week in equities as the SP500 sold down four 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 is my Cole's Notes version in case you cannot view the video.

Gold:

Long-term trend is up and I am currently long gold but feel a sharp correction could happen any day.
Price/Volume action on gold is bearish short term.
We took some money off the table on Friday into the strength.
I am protecting my long position using a stop around the $1,240 area.
I still like gold and hope it rallies, but if it turns around I will be in cash until the correction is over.

SP500:

SP500 is currently oversold after its four day selloff
This index is trading deep into a support level
Financial sector and GS (Goldman Sachs) tend to lead the market and they performed well on Friday.
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:

www.thegoldandoilguy.com

If you would like to get my detailed trading analysis and trading signals, please visit my website: www.TheGoldAndOilGuy.com.

Chris Vermeulen

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