Yesterday’s tout allowed for a pullback to as low as 1237.40 for gold to remain in feel-good territory, but the futures exceeded it, generating a bearish impulse leg on the intraday charts in the process. You know the drill by now: We’ll wait and see what the C-D follow-through leg looks like before we jump to negative conclusions. The most bullish thing that could happen would be for C-D to reverse from the midpoint pivot or higher, and then to generate a bullish impulse leg on, if not the hourly chart, at least the 30-minute. I’ve sketched this hypothetically for your further guidance. ________ UPDATE (January 22, 11:10 p.m. EST): Sellers easily smashed the 1234.40 midpoint support noted above, implying this decline will continue over the near term down to at least 1224.90.
