As you probably know, gold and gold stocks went ballistic yesterday. The HUI Gold Bugs Index was up by 6.61%, and Gold Bullion increased by about 13 dollars. Today, however, was not as promising. The gold bullion ETF, GLD formed a bit of a shooting star on the daily chart:
In addition, the entire candle is outside the upper bollinger band, and the RSI is getting uncomfortably overbought.
Notice that the high for the day was 70.00, which is round number resistance. But let's not just rely on technical indicators. Let's look at the intermarket picture.
The US Dollar is, once again, at the 80 level. This has proven to be strong support in the past. I exited my gold positions today, and will only re-enter if the 80 level is broken. It will be interesting to see what will happen on Monday.