Some Profit Taking...

The Dow closed down marginally by 41.74 points today in a sideways trading day. In fact, this is the second sideways day following the surge last Thursday. Yes, like I always said, its not unusual to see a few sideways days after big single day surges or ditches. The trading was dominated by profit taking for the first half of the day but the bulls fought back and steadily brought the Dow back up for the rest of the day. Yes, the bulls are alive and kicking. The only area within my scope which displayed strong bearishness is Gold. The GLD (ETF for gold) once again retreated from all time high (the third time so far) and broke a triangle pattern to downside. Are gold traders coming back into equities? Sure sounds like a logical plan since they have rode a good uptrend in gold so far and should be looking for other areas of growth. Short term support for GLD is around the $80 area, which makes it an acceptable candidate for a May 85/80 bear put spread.