Technical Analyst Likes S&P 500, Which has Risen Above its 50-day Exponential Moving Average, and Gold Miner ETFs

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Technical Analysis S&P 500

Exchange traded funds tracking the S&P 500 and gold miner stocks are at critical junctures and a bit more momentum could propel the ETFs to further gains, a market analyst said Friday.

“Today the S&P 500 has risen above its 50-day exponential moving average following a teasing four day jaunt beneath it. The next hurdle to overcome is trendline resistance of a channel drawn down from the May 2 high,” said Tarquin Coe, technical analyst at Investors Intelligence, in a note to subscribers Friday.

SPDR S&P 500 ETF (NYSEArca: SPY) gained 0.4% Friday afternoon.

“Overcoming that level, with a close above it today, will leave the index well positioned for a rally from Tuesday. The two weeks following Memorial weekend are typically strong,” the analyst wrote.

Gold stocks were also strong Friday.

Market Vectors Gold Miners (NYSEArca: GDX) is “extending its rally from the bottom of a nine month range and the relative chart versus the S&P 500 is doing likewise,” Coe wrote.

“Conditions are not overbought and as such the bounce should continue in the weeks ahead, likely up to the top of the range at $64, some 10% from current levels,” he added.

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