Charts Remix

Gold: looks short term oversold & getting ready for a bounce. Its weekly RSI hasn’t been this low since Oct 2008. Today’s FOMC minutes may mention the POMO outlook, which can provide the catalyst.

This link shows the S&P500 vs $GLD & worth noticing is big divergence between them. Traders are saying economic recovery is here so we dump gold, but stock market is short term overbought so any big stock correction should send investors fleeing the opposite back to gold, especially since Fed POMOs remain.

Gold200213

S&P500: Target is about 1550, then a general pullback to its 50DMA & rising RSI & chart support trendline. I don’t think its possible to reach 1700 without a short term pullback of about 7%.

SPX 200213

CAC40: Looks just like the Italian MIB. Falling trendline intact.

CAC200213

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