Yep, I just saved an update chart that I was going to post when I saw your comment. Nice recovery in GLD to snap back well within the wedge, already recouping nearly all of the early large gap down so far today. As I said, despite the trendline break & divergences, I have no desire to short gold or the miners instead looking for the next high-probability/objective long entry.

Although the equity markets appear to be headed for a green close today barring some unusually sharp reversal & sell-off into the close, my expectation is that the recent resiliency in gold despite what appear to be bearish technicals on the 60-minute chart is a result of a continually money flowing into gold in expectation of an impending correction in stocks. Yes, stocks are rising but on extremely low volume in recent weeks which could be as much of a lack of sellers (and short-covering) than an abundance of buyers.

Also notice that JNK & HYG (junk bonds) are trading down today Junk bonds typically trade much more inline with equities than other fixed-income classes as they are more responsive/predictive of the health of the economy vs. interest rates. One day does not make a trend but I’ll be on the lookout for any additional divergence between junk bonds & the stock market in the coming weeks as I have shown the divergences (via high-yield credit spreads) as an accurate predictor of major corrections in the past. Here’s that updated GLD 60-minute: