The Q's emerged from a three-week base formation today, breaking above key near-term resistance at 43.40/50, and then following through to attack the next important resistance plateau at 44.50/70. My overall pattern and oscillator work indicate that the Q's are poised to climb t 46.00 in the upcoming hours/days, and at that point we will find out if the price structure has established lows for the year.

For now, the technical set-up looks very promising.

While equities are buoyant, gold certainly has lost its glimmer. This is what I told our subscribers on Thursday, which remains essentially unchanged:

Ironically, the Fed's latest rate cut of 75 pbs turned out to be the death knell for the GLD, which has gapped down Wednesday and Thursday and plunged from 100.44 to just under 90.00 so far.

Let's notice that prices are heading next for a confrontation with the support line of the major channel that originated in August 2007, and which cuts across the price axis in the vicinity of 88.50.

I will be expecting the major support line to contain the current onslaught, at least for a little while anyway.