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Gold Breaks Support, Investors Continue to Flee EquitiesCEO Technician Gold in US dollar terms is breaking below an important level this morning:
It's looking more and more like last week marked an important intermediate-term top in gold and now the yellow metal will need to move lower to seek an equilibrium price level. As I pointed out in my post yesterday with so many marginal buyers already aggressively net long of gold the risk becomes much greater that a downside liquidation could occur. Gold does have a strong tendency to make an important low during this time of the year, however, given the price action of the past few days it looks like gold traders will need to wait for at least a couple of weeks before that low is in place. Meanwhile, the following chart of bond/equity fund flows is quite revealing in that the shift in investor sentiment during the last few months couldn't be much more extreme:
This begs the question, what has been holding up stocks? And how much longer can the major equity indices remain near all-time high levels as investor sentiment continues to sour on the space? ### CEO Technician Disclaimer: The work included in this article is based on the author’s analysis of technical charts. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. It’s your money and your responsibility. 321gold Ltd |
