Yes, we should be disappointed by June Gold’s failure to ‘actualize’ Monday’s promising $61 reversal. But bear in mind that the rally didn’t negate bearish targets I’d flagged at 1218.60 and 1190.40, and as a result, any buying we do in gold futures or other bullion vehicles is speculative. For the moment, however, we should plan on doing no buying at all, since the spike high of yesterday’s bull trap gave way to a downtrending impulse leg that left bulls and bears locked in a duel. If the top had been just a little higher, exceeding the 1416.50 ‘external’ peak that I’ve labeled, I’d say bulls had the edge. As things stand, the fray looks pretty even and hints of a sloppy finish to the week. _______ UPDATE (6:19 a.m. EDT): Something has roiled the markets early Thursday morning, sending index futures plummeting and gold higher, although not quite soaring. The high so far is 1392.00, but it’ll take an unpaused (once above 1413.30) thrust exceeding 1416.50 to turn the hourly chart decisively bullish. A clear pattern on the hourly (A=1340.00 on 5/19) pointed to 1426.10, subject to midpoint resistance at 1389.60.
