Just a simple view of the GLD daily chart. If the party in stocks continues aggressively, this is likely to fail the support at the convergence of the moving averages and the top of the pattern, which broke through the SMA 200 (on geopolitical tensions; usually not a good thing for gold) in early April.
But the stock market is gapping up in hysterical fashion, so who the hell knows? It looks like a world full of casino patrons, day traders, quant boxes and Ma ‘n Pa all diving in. Is that healthy? Sustainable?
Tuning out the noise, if gold holds support it negatively diverges the stock party. If not, it’s probably party on Garth, because risk ‘on’ would be intensifying and building upon itself in the markets. So keeping an eye on gold (and Treasury bonds, for that matter) might be a good idea.
For reference (to the previous post on silver), here is gold’s less extreme CoT view…
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