The GLD (SPDR GOLD) was marginally higher this morning. In my January 9th comment titled "Gold: Is the Bottom In?", I suggested that the yellow metal may very well have put in a bottom at the end of December after falling precipitously on the heels of my December 11th comment titled "Gold and the Golden Ratio". 

Chart 1 below suggests that a falling wedge is still forming, calling into question the sustainability of the late-December bottom. Furthermore, today's high of $163.08 coincided with the 50-period moving average on the 3-day timeframe (chart 2).

(Place mouse cursor over chart to enlarge) 


Chart 1. A falling wedge appears to be forming on the chart of GLD. A test of the down-sloping 50-day
could signal the end of the second and final X wave.


(Place mouse cursor over chart to enlarge)  

Chart 2. Today's high coincided with the 50-period moving average on the 3-day timeframe. This timeframe
appears to be the dominant one in the context of this ongoing correction.

While I don't yet have a SELL/SHORT signal on GLD, I'm watching it very closely, anticipating a short trade setup followed by a triggering signal.

Trade Well,

Peter