U.S. stocks are on the march today, as are April gold futures. At the midway point of the Wall Street session, the DJIA DOW (+285), S&P 500 SPX (+75), and NASDAQ (+465) have all broken out to the bull. In addition, bullion is on the rally, up more than 2% on the session.

Once again, the passage of Joe Biden’s COVID-19 relief bill is in the news. A final vote in the House of Representatives is scheduled for Wednesday, with a Biden signing soon to follow. Although this event is already priced into the markets, it comes as welcomed news to risk asset bulls. 

On the traditional economic front, there wasn’t much on today’s calendar. However, we did see an uptick in the NFIB Small Business Optimism Index (Feb.). The figure came in at 95.8, up from January’s number of 95.0. This is a peripheral metric, but does suggest that many think business is about to pick up as more stimulus is due to hit the U.S. economy in short order.

Today has brought a positive correlation between April GOLD futures and U.S. stocks. Let’s dig into bullion’s daily technicals and check out a key Fibonacci resistance level.

April Gold Approaches Key Resistance Level

Beginning in late-February, April gold has been in a pronounced downtrend. Now, it appears that things have changed. A challenge of the Current Wave 38% Fibonacci Retracement (1727.5) appears imminent. 

Here are two key levels worth watching for the immediate future:

• Resistance(1): 38% Current Wave, 1727.5
• Support(1); Spike Low, 1673.3

Bottom Line: As long as the Spike Low (1673.3) remains the short-term bottom of this market, I’ll have sell orders in the queue from 1726.9. With an initial stop loss at 1731.9, this trade produces 50 ticks profit with the bearish trend in April gold.