Earlier this morning the Gold/Silver Index (XAU.X) triggered an alert at 50.00 when the index broke our horizontal support level (C). Three hours later the index is above level (c) and turning towards the 200-period MA.
Gold and Silver Index - 60-minute interval.
Currently, our primary trends are downward trending resistance (B) and our horizontal support line (E). This morning when the XAU.X traded lower it was "good" for stocks, but as this index strengthen it did so at the expense of equities. Let's look at the S&P 500 Index (SPX) for confirmation with what we're seeing in the XAU.X.
S&P 500 Index Chart - 60-minute interval.
Earlier this morning the SPX gapped above our horizontal support level (D), but had trouble at the 50-period MA and traded back to level (D). Again, trades will want to monitor the above levels for guidance in their trades. Now that we are above our "water line" traders "short-term" should be feeling a lot better. I kind of get the feeling that the markets are taking a breather here, as Gold/Silver (XAU.X) and the S&P 500 (SPX) are holding up well. Normally, we've saw one (XAU.X or SPX) or the other trade higher. We could say that is a deviation of pattern and traders should be alert to which way the markets might go and they should have bullish and bearish plans ready for stocks, or indexes they're trading.