Tuesday, May 29, 2012

The gold futures have moved up enough to cancel two small bearish patterns and might soon confirm a target which, if reached, would nullify our sub-$1500 targets.  The main drama now has to do with the 1599.00 high, which is the 'C' point associated with the 1453.40 'D' target discussed last week.  If the futures can reach 1578.70, they will confirm a bullish target at 1603.30, which would be more than enough of a rally to send the bears back to the drawing board.  The attached chart also shows a one-off 'A' which should be considered along with the 'A' we are using.  If the futures fall below the 1570.50 'C' point, traders will have to recalculate.  (Posted by Doug “harry” McLagan)

Index futures have barely budged Monday night, perhaps because no one can recall what pathetic excuse for news was driving prices at the outset of the three-day weekend. Someone mentioned in the chat room that there was "good" news concerning Greece, but these days, that could mean simply that the country has begun the new week without declaring bankruptcy. In any case, the euro was acting too weak for anyone to infer that Europe's crisis is behind us.

The futures opened Sunday night with a gratuitous short-squeeze, suggesting that traders were having second thoughts about the crescendo of gloom they orchestrated ahead of Memorial Day weekend.  From a Hidden Pivot standpoint, the so-far 6-point goosing is inconsequential even on the 15-minute chart, let alone the hourly chart where moves worthy of a claim on our attention begin.  This one could get to the 1333.25 target of the pattern shown, implying that any trades thereupon will require a nimble touch.  Note that Sunday night's lurch has begun from within 1.25 points of the pattern's 1313.75 midpoint. Calling the turns confidently is easier than you might think.  Want to learn how? Click here for information concerning the upcoming Hidden Pivot Webinar on June 6-7.