Now that earnings season is upon us, let's look at a chart of the S&P 500 (SPY) to gain some perspective on where we may be heading. Below is a daily chart showing the recent bounce high at 137.80 and the low on June 4th at 127.14.
So from the above chart we have a trading range of 8.38%, ( 127.14 low to 137.80 high ). Volume has been lackluster lately probably from a holiday induced week. Gold has not performed well during the month of June. We will be looking to buy gold on any dip down to prior support. We believe that the Fed may act and give more Quantitative Easing (QE) stimulus when they meet in September, and gold should perfrom well if that is the case. Below is a chart of Gold (GLD) and the zone we may be interested in buying.
I would view a good risk / reward entry of GLD at the highlighted green area shown on the chart above. I believe we may get there within the next 1-2 weeks.
Bottom Line: The S&P 500 looks to be range bound for now, but may gain better direction once earnings season is upon us. Gold is heading down to it's support area again. I expect that area to hold as support, making buying GLD a lower risk entry point.
