– The last update from me said that Gold’s destiny for January lay 1068-1072. It hit 1066 on Futures and then gave this decline.
– Moving forward, basically, Gold’s destiny lies at 1038.47 the November 2009 lows. This is also true for SPX, at the 11/2/09 lows. As long as the 11/2/09 lows are holding another Wave up on dailies remains on both Gold and SPX. Most likely timing for this wave up to top is 4/27/10.
– Gold had the highest relative strength of all declining markets that are following similar CIT’s. And it finished at a nice double bottom, good for Monday bounce at the least.
– Overall, from current levels, depending on ones’ investment style, the risk/reward has shifted to upside in Gold, with a target of 1262.10 projected for the next wave up, and a tight stop at 1070.5 (Futures), and a more gut wrenching hold for a potential deeper retrace towards 1038.47 (not expected). The current down cycle should stabilize between 1/29/10 & 2/2/10 (for the most part), with a potential retest on 2/11/10. And then it is off to the races to the upside again!
Good luck to all!
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