Gold spot has made another higher high this morning, and, we remain in the bullish camp for that move to around $1800/10, which is now a stone's throw away. Note, however, that it would not be wrong for traders long from $1650 to take profit here if nimble enough to get back in quickly. We say to be ready to buy back because, as the below daily chart shows, prices are rising to the 200-day moving average. It is doing so very early in the momentum swing. The Stochastic RSI is just coming out of oversold conditions while printing a higher low thus far.
Taking a look at the SPY, it is actually breaking out over topline resistance this morning, following yesterday's furious intraday reversal. This is what we have been expecting for quite some time. Traders would not be wrong to take profit here either, but again, we recommend staying nimble as pullbacks may continue to be shallow. The below daily chart shows what happens when the Stochastic RSI makes higher lows embedded into overbought territory, and momentum looks to be turning up yet again.
PCE came in under expectations this morning, lending credence to the dovish remarks Jerome Powell delivered yesterday afternoon. If Jobs data comes in weaker than expected tomorrow morning, expect upward momentum thrusts in the above-mentioned asset classes to pick up steam. Conversely, a pullback would likely materialize, unsurprisingly, if the data comes in strong enough; because, in this market, bad news is still good news.
Thanks and have a great day.
