This morning GLD gaped above all four moving averages. That’s one way to take out overhead resistance. As you can see we are approaching the blue downward slopping rail. That should be a good test of resistance. Watch how we interact with that blue rail for more clues. Also note the big gaps that have formed on this last little rally.  There is a good chance those gaps will get filled at some point. When is the only question.

GLD gap over 4 moving averages.

The Dow blasted thru the resistance rail at 11,600. This is a major failure and any shorts or hedges you may have on should be taken off immediately. That goes for precious metals stocks also.

Dow daily breakout above 11,600 resistance.

Today we have arrived at the 11,600 backtest area of the upper S&R rail on the Dow. This backtest could go on for several days before we know for sure if its for real. A strong closing price above the S&R rail would be a negative. Note, our top S&R starts at the big double bottom hump. If you follow the top S&R rail to the right, starting at the double bottom hump, you can see how this rail has cleanly reversed it’s roll between support and resistance.

Dow backtest of the 11,600 S&R rail.