NEW YORK (TheStreet) -- We had a very strong week in the markets, and many leading stocks jumped this past week. In fact, it was the best week this year by a long shot. But I don't think it will end up being our best week of the year in the end.
This bull market we are in is very strong and has years to run from what I'm seeing. There are a lot of bears and underinvested funds out there, as we basically are climbing the proverbial wall of worry.
We had huge outflows from funds two weeks ago, so that money will be coming back in, pushing markets and stocks higher soon.
Gold and silver continue to move nicely higher, but they are moving a bit too quickly here and are definitely due for a little consolidation period now.
Miners are really coming off these historic lows well and remain a great buy for a long-term hold.
Let's move right into the charts and see why we need a consolidation or rest, and where we can expect support to come in.
Gold rose 4.10% this past week and did so in style.
I've been saying the slower this move is as we come off these major lows, the better.
We did begin to accelerate into the end of the week and we really moved well past the important resistance level at the 200-day moving average on increasing volume. We do need to consolidate here, as such a move above the 200-day average is designed to suck in the last of the bulls.
The buy point for gold was back near $1,270, not a break of the 200-day average at $1,310.
A week or so of falling back to $1,300 or to $1,280 would give us a very nice handle in this large cup or saucer pattern here.
There is no major panic here to buy, and I've been saying that gold isn't so much for trading here yet, rather accumulating physical gold off these major lows.
I really like this base. The action out of it is textbook so far.