Don’t shoot me — I’m only the messenger — but the breach yesterday of an important midpoint support at 538.29 will have bearish implications in the weeks ahead. For if the 461.97 ‘D’ target associated with that support were to be reached it would imply that the Gold Bugs Index is about to fall by 15%. If this worst-case scenario is not about to materialize, we should see evidence in the form of upthrusts that create a bullish impulse leg on charts of at least 15-minute degree. For that to occur today, a print at 567.75 would be needed.
