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Chris comments: It's too soon to tell, but a few things of importance seem to be taking shape.
The 2-year rising wedge is coming to an end. The bottom of the wedge is being tested and GLD is a fraction below the line.
My June 26th post (see chart below) pointed out that a "Fibonacci time cycle' was at hand. Gold closed that day at $1,255, currently it's at $1,188. Not a huge decline, yet the 144 fib cycle did appear to turn Gold's upward very positive momentum. The last time the 144 Fib cycle ended, gold declined around 20%. In a bull market for any asset, declines of this size can take place.
For those long, I would harvest some sweet gains if this support is taken out. Tor those wanting to score on defense, take positions on a break of support.
Yesterday Joe Friday observed that gold shares (GDX) are breaking support. Another potential falling off? Stay tuned!
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