The battle for $1750 gold continues, but as regular readers will know, this trader remains in the bull camp for a test of the $1810 level. Over $1810 and bulls have $1875 to look forward to- but should expect another battle at $1850. Battles will be fought on the way to winning the war with your physical stashes.
It is no secret that we have also been bullish on the stock market dating back to mid-October. Since, we had suggested that overhead resistance on the weekly chart would pull price up. Further, we posited that should the topline resistance give way to bullish pressure, consideration of whether the bull market is back on would be merited; the weekly chart below is another update of SPY.
Although we aren’t there yet (and traders may take profit prior to obvious resistance), there is one important correlated asset that points to the likelihood of further gains. That is the orderly descent of the US 10 year bond yield. The below weekly chart shows a significant support level where a confluence of technical markers intersect, which in this traders opinion, may pull rates down further. Should this occur in a continued orderly fashion- the stock market will in all probability continue to enjoy the relief.
Thus far, the current setup is conducive to further gains for stock and metals bulls.
Thanks and have a great week.
