Bulls put up a good fight yesterday, but by day’s end, with the stock market on another manic tear, they were looking pretty beat. It was the worst one-day selloff in gold since early January, but perhaps less menacing thus far than it might seem. That’s because it follows a high that had broken above an old peak to generate a bullish impulse leg on the daily chart. We’ll be better able to gauge seller’s resolve once we’ve seen how the futures handle a corrective Hidden Pivot like the hypothetical one shown. It lies at 1362.60, but if it’s crushed the futures would be signaling more downside to at least 1356.80, a Hidden Pivot support that can be bottom-fished with a stop-loss as tight as four ticks. I’d suggest doing no more than one contract unless you plan to use a camouflage-style entry. _______ UPDATE (10:08 a.m. EDT): The 1356.80 target was good for a $3.60 bounce (from 1357.20, actually) that lasted for all of a half-hour. Thereafter, it was lower still, presumably to at least 1347.50 (3m, a=1382.90 at 10:45 a.m. yesterday, b=1361.90, c=1368.50).
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