Gold Outperforms the SPX Since Fed's "No Taper"

Although the e-SPZ (e-mini S&P 500) broke prior support at 1687.50, it did not follow-through to the downside, which has the potential to spring a minor bear trap.

Then again, the absence of down-side follow-through has not triggered meaningful buying interest either.

Bottom line: the e-SPZ continues to exhibit a stair-step decline of lower-lows and lower-highs since the "no taper" spike high at 1726.75.

Unless the pattern is disrupted by a climb above 1701, the bears will remain in directional control.

Meanwhile, spot Gold has surged above key near-term resistance at $1330, and is consolidating its gains above the breakout plateau, suggesting strongly that there is more upside ahead.

Should strength resume, the larger pattern since Sept 13 increasingly resembles a developing base that points spot Gold towards a test of $1375/85 next.