The low of yesterday’s selloff fell $2 shy of the 1316.70 target that I put out intraday. The failure of sellers to achieve this target is ostensibly bullish, but it will now take an impulsive upthrust on the intraday charts to put bulls back in charge again. This has yet to occur; in fact, bulls have so far failed to surpass any prior peaks, let alone do so with the kind of verve we should like to see. If it resurfaces, the first place it would be noticeable is on the 5-minute chart (see inset), via thrust that exceeds either or both of the two labeled peaks. Night owls looking for a way to board should pay them close heed, since either could be leveraged via camouflage.
Looking at a bigger picture, bulls despondent about Thursday’s weakness should check out the daily chart, which puts the selloff in a different perspective. Indeed, the $25 drop seems relatively minor when measured against the $111 rally off mid-October’s 1251.00 low. Bulls might also want to ponder the ostensible reason given by the usual talking-head imbeciles for the drop in gold — i.e., that The Tapeworm is back on the table. Let me repeat this for the umpteenth time: With the economy sinking into a morass because of Obamacare, an incipient crash in the real estate market and steady slippage in corporate earnings, any Fed tightening is about as likely as a Martian invasion. It’s inflate-or-die, just as it has been for the last ten years, and bullion investors should act accordingly.