Markets Killing Time Ahead of ECB on Thursday?

At mid-session, the interesting aspect to today's action is that the USD has weakened noticeably as the EUR/USD has broken out to the upside from its more than 2-week correction.

Thus far, neither spot gold and the SPDR Gold Shares (GLD) nor the S&P 500 is following the Greenback's lead. At least not yet.

At this juncture, the S&P 500 is leaning against its July-Oct support line, now at 1430.50, which if violated and sustained could trigger downside continuation through last week's low at 1424, on the way to 1404-1398. Conversely, only a sharp rally that hurdles 1445-1446 will reverse current polarity.

As for gold, it continues to exhibit terrific relative strength, although it has not made any real headway on the upside, despite the tailwinds provided by today's surge in the EURO against the USD.

That said, as long as spot gold holds above support at $1763-$1759, I have to give it the benefit of the doubt on the upside.