2 weeks ago I tightened my stops on my my blue chip holdings and bought some put options on SPY. stopped out of almost all of them and made a killing on the options.

Right now gold is overbought and has been since mid July. Today it is well outside the bollinger bands. The SP500 is oversold for about a week and a half. In general assets can remain overbought for a long time but oversold assets do not stay there very long.

My guess is there will be a rebound in the markets for a few months paired with a possible sell off in gold. It all depends on whether the traders decide that selling gold and buying stocks is a good move ... they are not there yet.