A selection of charts to consider as trading begins for the week. Interesting that this latest equities rally has very closely followed the historic post-election chart presented at the bottom of this post.

Regards - VHF

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Gold in U.S. Dollars continues to struggle. It lost another $15.50 per ounce last week. Resistance at $985.80 may be forming. Short term momentum indicators have rolled over from a short term overbought level and are trending down.

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Gold in Canadian Dollars looks very different. It has formed a 10 week trading range between $1,038.00 and $1,122.00.

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Gold in Euros has a similar technical pattern. Its three month trading range is between 645.48 Euros and 705.10 Euros.

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Gold in British Pounds broke support at 584.40 last week and established an intermediate downtrend.

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Silver has a similar technical profile to gold in U.S. Dollars. It rolled over after testing resistance near $16.20 U.S. Momentum indicators have rolled over from short term overbought levels.

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Gold equities on both sides of the border have responded strongly to weakness in precious metal prices. HUI has fallen 13.5% from its high two weeks ago. The TSX Gold Index has given up 11.4%. Stochastics already have fallen to a short term oversold level, but have yet to show signs of recovery.

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U.S. Treasury bond yields spiked to 3.98% prior to the 10 year and 30 year Treasury bond issues last Wednesday and Thursday. By the end of the week, 10 year Treasury bond yields returned to an unchanged level for the week. Resistance exists at 4.08%.

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The VIX Index eased 1.40% last week. Intermediate trend remains down, implying that investor fears continue to dissipate.

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Scary chart: U.S. equity indices eerily have tracked closely their historic trend during a post election year. If the trend continues, U.S. equity markets will move slightly higher during the next six weeks followed by a significant correction.