S&P 500 Retracement AND Buying Opportunity for GOLD

Previously on Long & Short Investment there was an article on S&P 500 Next Resistance Level and discussed how difficult it will be for S&P 500 to break $1150 level. Since 2010 S&P 500 has been pretty much trading in between $1135 and $1150. This trading pattern could come to an end with today’s big decline
losing more than 1.3%. If it closes below $1135 level today, then we can expect S&P 500 to soon reach its 50% Fibonacci retracement level at $1121. As long as there are not too many bad earning reports, we should see it move up again towards $1150 level and even break this level only after its retracement back to 50% Fibonacci retracement level. However, if there continues to be bad earnings reports, then we may not reach $1150 level again for a long time.

Meanwhile, GOLD has now become a good area for investment. Looking at GLD 6 month chart, GLD has not retraced back to its upward support line. Today or tomorrow would be a good entry point on GLD to go LONG. Other GOLD ETFs to consider are GDX and GDXJ.

Investment in Casino Stocks Series:

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