This morning we took a look at Gold and the Streetracks Gold Trust SPDR ( GLD) on our latest www.thefredreport.com weekly conference call (recorded call: www.thefredreport.com/articles/conference_070810). GLD has fallen as anticipated and come close to our downside target of 115 sooner than we expected. There are layers of support between 114 and 115 GLD. We expect these to be tested. We note that weekly stochastics remain overbought in spite of this decline, and also note that the long-term trend remains up. This suggests that more consolidation, and not necessarily downside pressure, is needed before the next significant up move in Gold. Over the longer-term, we continue to like Gold but expect to see choppiness over the next month or so. However, realize there is risk here -- Gold has outperformed commodities in recent weeks due to currency and market related fears, and could fall more if these fears abate. For stock traders, Eldorado Gold ( EGO) is likely the best looking stock on a technical basis, but could fall more if stocks and the Euro Trust Currency Shares ( FXE) pick up, which we expect. We are looking for a new buy signal on the GLD to re-enter on the long side. Gold often has strong moves up in the fall and this timing is in line with the technical indicators. It makes sense to take a quick look at sentiment. It is worth noting that anecdotal sentiment is about as bad as it can be, with bears quoted in everything from the Sunday NY Times to TV, and all over the Internet. The FRED Report is the only bull I can find right now. Should we hear continued bearishness and should the market recover, this would make us more optimistic. Many technicians will not start to get bullish until the S&P 500 closes above 1140, which in our opinion is "gas in the tank" for the bulls. While we could certainly be wrong here -- the ingredients for a strong up move are certainly present, and this is what we expect.