Gold's Sell-Off a Correction in Ongoing Bull

Now that all of the "I told you so's," and market "revisionists" are telling us that gold is a terrible "defensive position" and no one should have thought otherwise, let's have a look at what the multi-month technical set-up indicates in the SPDR Gold Trust (NYSE: GLD).

My pattern and momentum work argue that the current decline in the GLD from the May 12 high at 122.24 into today's low at 116.08 (5%)? represents a correction in an ongoing bull market, rather than a reversal into a much more bearish trend. Only a sustained break beneath the eight-week up trendline, now at 115.30/40, and downside follow-through that breaks 113.13 (May 5 pivot low) will inflict significant-enough damage to an otherwise still dynamic technical set-up to trigger neutral signals.

In the meantime, my near-term work is telling me to expect a meaningful low in the hours directly ahead.