New York, Dec 3 (TradersHuddle.com) – The last month the market has seen continuous rotation, except for the financial sector that has been lagging in this latest leg up in the market. Gold on the other hand has greatly outperformed the S&P 500 since September and especially the last leg up that started in early November where the Spider Gold Trust ETF (NYSE:GLD) went off to the races.

The Spider Gold Trust or GLD has been the easy way to play the latest Gold rush that continues to make record highs as Gold hit $1,220 on Thursday session.

The trend in Gold has seen an increase momentum in its last leg up after a consolidation period during last October, and after breaking above $104.75 on the news about India increasing its gold reserves it has not looked back moving all the way near $120.

Based on the inverse head and shoulders pattern that triggered back in September the measured moved is close to $120, we can still see a flush or “melt” up as the last push is made by momentum traders before the GLD enters a consolidation period.

By definition all breakouts need to retest the breakout level, therefore one would expect a pullback in Gold towards $104.75 would be a prime buying opportunity, if not at least we need to see a 50% retracement for investors to feel confident in getting back to this big asset bubble.