Just a quick snapshot of the latest charts painted during the summer doldrums...

Regards - VHF

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Gold slipped $3.70 U.S. per ounce last week. Intermediate trend remains up. Three month trading range remains between 1,186.50 and $1265.00. Short term momentum indicators are oversold and showing early signs of bottoming. The ultimate support level is at its 200 day moving average currently at $1,143.96. Seasonal influences turn positive near the end of August.

Gold equity indices and ETFs in U.S. Dollars have a similar technical pattern. GDX is trading in a four month trading range between $45.70 and $54.83. Last week, it bounced from its 200 day moving average and gained 4.7% from its low on Monday. Short term momentum indicators are oversold and showing early signs of bottoming. Gold equity indices continue to outperform gold, a positive technical signs for both gold and gold equities.

Gold equity indices have a history of entering into a period of seasonal strength at this time of year. Sweet spot is from near the end of July to the end of September. According to Thackray’s 2010 Investor’s Guide, the optimal time to own gold equity indices is from July 27th to September 25th. The trade has been profitable in 17 of the past 25 periods for an average gain per period of 6.8%. In contrast, the S&P 500 Index averaged a decline of 0.6% during the same periods. The sector could be helped this week by strong second quarter reports. Several key companies in the sector are scheduled to release results on Wednesday.

Silver also is starting to look interesting on the charts. It has a four month trading range. Intermediate trend is up. It gained 1.4% last week. Support is at $17.08. Resistance is at $19.81. Nice bounce from its 200 day moving average last week! Short term momentum indicators are oversold and showing early signs of bottoming. Strength relative to gold is positive, an encouraging technical indicator for both gold and silver.

Ditto for Platinum! It gained $30 U.S. per ounce last week. Nice bounce from support at $1,489.90! Short term momentum indicators are recovering from oversold levels.

Copper gained 8.7% last week and broke above two resistance levels in response to strength in the Shanghai Composite Index. Short term momentum indicators are overbought. Overhead resistance exists from $3.20 and $3.68 per lb.

The CRB Index gained 1.68% last week, but has just entered into a zone of resistance. Short term momentum indicators have recovered to overbought levels, but have yet to show signs of peaking.

Crude Oil gained 3.62% last week and is testing a zone of resistance that starts at $79.70. Short term momentum indicators are overbought, but have yet to show signs of peaking.

Ditto for unleaded gasoline! It gained 3.41% last week and is testing resistance starting at $2.19. Momentum indicators are overbought, but continue to trend higher.

The U.S. Dollar was virtually unchanged last week (down 0.06). It bounced from the top of a previous trading range near 82. Resistance is at 88.71. MACD, RSI and Stochastics are oversold and showing early signs of bottoming. Recovery to its break down level at 85.03 or to its 200 day moving average at 80.40 is possible.

The Euro also was virtually unchanged (down 0.20) last week. Resistance exists in a band between 132.69 and 136.77. Support is at 119.13. Short term momentum indicators are overbought and showing early signs of rolling over. Downside potential is to its breakout level near 124.

The Canadian Dollar jumped 2.01 cents U.S. last week thanks mainly to strength in the Shanghai Composite Index. Short term momentum indicators have recovered to slightly overbought levels. Support exists between 92.18 and 92.03. Resistance is at 98.61

The S&P 500 Index gained 37.78 points (3.55%) last week. Intermediate trend remains down. Support is at 1,010.91 and resistance is at 1,131.23. The Index moved above its 50 day moving average on Friday and is testing its 200 day moving average. MACD and RSI have recovered to a neutral level. Stochastics are short term overbought. Volume remains below average.

The Dow Jones Industrial Average gained 326.72 points (3.24%) last week. Intermediate trend remains down. Support is at 9,614.32. Resistance is at 10,594.16. The Average moved above its 200 day moving average on Friday. MACD has recovered to a neutral level. RSI has recovered to a slightly overbought level. Stochastics are short term overbought. Strength relative to the S&P 500 Index remains positive.

The TSX Composite Index gained 144.56 points (1.25%) last week. Intermediate trend remains down. Support is indicated at 11,065.53. Resistance is at 12,077.01. The Index moved above its 50 and 200 day moving averages on Friday. MACD and RSI have recovered to a neutral level. Stochastics are short term overbought. Strength relative to the S&P 500 Index has changed from positive to neutral. Volume remains below average.

The Baltic Dry Index recovered 6.2% last week, the first gain since late May.

The VIX Index fell 10.6% last week and is testing support at 22.87%. Short term momentum indicators are oversold.