Meanwhile, the NASDAQ has been holding much stronger. While it too has pulled back, it hasn't done so near as much as the other indexes. But then again, the NASDAQ doesn't have the toxic waste the other two indexes have either. Also, the NASDAQ has formed another bullish pullback off highs pattern (POH) as shown below:
But What About Gold?
About the time you hear everyone on TV pounding the table on gold and you start to hear the words: Safe Haven Buying for days on end you know you're near the end of the run. Why? Its emotional money saying "UH OH ― the sky really is falling, I gotta get some of this" (AFTER The fact of course).
This tells us we are near a stall point. There is an old adage that has served us technicians well over the years and that is:
"More often than not when everyone is talking about it, that's about the time it rolls over..."
Don't follow the herd! We all know what happened to those who followed the conventional Wall Street herd right? They added 7 years to their time horizon window just to get back to where they were in 2007.
While Gold MAY be working its way higher over time, technically it's overbought and at resistance. While we're not saying sell it, we are saying expect a pullback. Take a look at the chart below:
Notice how it is bumping up against resistance. Also, notice that the full stohcastics are overbought? Not time to jump on the bandwagon for now.
Just remember the market has a funny way of letting those who have to have it actually have it ― in more ways than one, we might add.
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