Although GLD has a long way to go to repair some of the damage it sustained during the past few sessions, there are some important signs shown on the enclosed chart that argue for a basing period followed by a new upleg in the GLD. 

1) There was huge capitulation-type damage seen on Tuesday.

2) Wednesday's low at 55.05 was above the prior significant corrective low of 53.15 from March 15, which preserves the series of higher highs and higher lows of the intermediate-term, 18-month uptrend.

3) The price structure has stabilized amidst its intermediate-term rising 150 and 200 DMAââ,¬â"¢s, which is a very constructive sign that the underlying bull trend remains intact and viable.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.