With Wall Street visualizing Whirled Peas and the transformation of the Middle East into a boring oasis of stability, gold has somehow managed to hold its own.  Even so, the breach of the 1366.90 midpoint support shown in the chart has put the burden of proof on bulls for now, since it portends more downside over the near term to as low as 1338.80, the ‘D’ target of the pattern. (Note: You can bottom-fish there with a tight stop-loss.) Alternatively, the most bullish thing that could happen would be for the futures to reverse direction and create a bullish impulse leg on the ‘hourly’ by pushing above the 1400.00 peak recorded last Thursday.  Less decisive but encouraging nonetheless would be a pop exceeding the 1380.30 ‘external’ peak made yesterday on the way down. _______ UPDATE (9:52 a.m. EDT): Last night’s $37 takedown exceeded my 1338.80 target by nearly 13 points, activating a new correction target at 1319.80 (A=1434.00 on 8/28, daily chart) that lies about $6 beneath the so-far low.  You can bottom-fish there as well with a tight stop-loss, perhaps emboldened by the fact that the futures took their biggest bounce overnight — a $6.30 move — from exactly 1338.00.  If you are concerned that this nasty selloff is something worse than a correction, check out this pattern on the weekly chart to be reassured that it is not: A=1271.80 on 8/9; B=1434.00 on 8/30; and C, still informed=(prospectively) 1319.80. ______ UPDATE (September 13, 1:08 a.m. EDT): Gold’s ups and downs have been very precisely predictable lately. Yesterday, for one, the futures bottomed at exactly 1320.40 — 0.60 from the target proffered above — then rallied $10, so some subscribers may have caught a nice ride. The bullish tide has receded by nearly $8 since (see inset, a fresh chart), coming so far within a single tick of the 1322.90 correction target shown. I am unable to say with any great confidence at the moment whether this low will hold, but bulls will need to goose the futures $40.60 from somewhere above  1271.80 to get back in gear. Technically, that would actualize a rally pattern on the weekly chart  with the potential to hit 1482.60. Alternatively, more weakness would likely bring this vehicle down to at least 1318.50, a Hidden Pivot support that can be bottom-fished with the usual tight stop-loss. (Late bulletin: Moments ago, at around 1:30 a.m., DaBoyz tanked this vehicle with a $12 downdraft. New target: 1306.90.)