Buyers appeared to be chomping on the bit Monday night, converting the promising impulse leg shown in the chart into the modest $16 rally that would complete the minor-cycle pattern shown. The midpoint resistance lies at 1671.90, and my hunch is that if and when that Hidden Pivot is exceeded, bulls will make short work of Monday night’s 1674.40 peak. That in turn would put the futures with easy distance of a 1674.90 ‘external’ peak from a week ago whose breach would refresh the bullish energy of the intraday charts. _______ UPDATE (11:39 a.m. EDT): The fact that today’s mini-crash in Gold is occurring after the futures poked above the 9/27 peak at 1679.20 is telling us that Gold is out to cripple, maim, sodomize, defenestrate and otherwise hurt bulls in any way it can, and that is why we’ll have to be doubley attentive to small signs. Right now, with the futures having created a nominally higher point ‘C’ in the distribution pattern begun from 1751.80 on September 23, we should use a 1573.10 midpoint as our minium downside objective for the near term, and a 1464.70 target if the midpoint gets smashed. As always, these numbers are subject to revision, but the futures would need to pop above 1704.90 TODAY to put bulls back in charge.
