Gold continues to trade within the 1540-1640 range. This might be tiresome for many traders, but very helpful to others. Sell near the top range and buy near the bottom. The good thing about this trading range is we have clear levels that if broken, gold will make a strong move towards that direction. Gold has made a triple top in the area of 1630. It has made 3 consecutive lower lows and got rejected yesterday, unable to break higher. It lost nearly 25$ in just a few hours towards 1597$ and then bounced towards 1610$. A break above 1625$ would be a bullish sign and that should be a stop level for any short position in my opinion. Bulls will remain comfortable as long as gold does not break 1525$. Soon this range will break, but we don't know yet towards which direction. If it breaks above 1630-40 then 1750 will follow. If 1530$ is broken, then most probably 1375$ will follow.
S&P made a pause to the recent rally and is probably consolidating in a 4th wave towards 1352-55. An hourly close below 1363 will push towards our first target of 1352-55. If the form of the decline is impulsive we should also take into consideration the possibility that the upward move is over and a correction to test 1340 will come. Important support levels are 1335 (wave 1 top not to be overlapped) and then 1310-05 major support for any bullish chance to be viable.
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