Gold’s bounce came from exactly where it should have yesterday (see inset), as though its handlers have been using charts to determine where to do their dark magic. Ordinarily we would infer that any correction exceeding a p midpoint support implies more weakness ahead. In this case, however, based on recent experience, we’ll assume only that it portends more tedium. Strictly speaking, it would take a dive exceeding July 17’s 1269.30 low to generate the kind of bearish impulse leg worth worrying about. Alternatively, we should want to see a pop to 1340.60 by week’s end to signal the bull’s resurgence.
