TTT Gold Update

Below is a daily chart of GLD, the ETF which tracks the price of gold in U.S. dollars.

We see a break of the intermediate-term uptrend (green line) in July, followed by a re-test of that trendline from below in August on lower volume.  So far this is normal movement which typically resolves downward.    

The ideal and expected scenario, per our positioning, is for a stock market bounce corresponding with gold rolling over and extending the move down that began at the June highs. 

Should the market exceed the lows from last week, that'd probably be the last drop down before a short-term rally.  Bearish sentiment is too high and indicators too stretched to support a significant move down at this time barring of course some unexpected event to cause it.  The same commentary applies for gold, in reverse.