The good news is that the SPDR Gold Shares (NYSE: GLD) has carved out an up-leg off of its Dec 29 low at 148.27 into today's high at 160.05 that exhibits very bullish form. This along with my 5.5-month cycle low last month argues that a significant correction has ended (Sep-Dec) and that a new bull phase has commenced.

In addition, let's notice that the GLD is sitting above both of its 200-day moving averages, which also is a very constructive sign.

That said, the not-so-good news (perhaps) is that I can make the case that the current up-leg is complete and needs a pullback into the 157 area prior to resumption of even more intense strength.

In any case, I am not exiting or hedging any pullback period, and would add to the GLD into weakness.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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