The chart shows the crushing weight of the downtrend that has unfolded since October 21. At the moment, the selling is being impelled by news that Swiss voters rejected a measure that would have required the country’s central bank to hold a portion of its assets in gold. The futures were on a weak bounce Sunday night off a so-far low at 1141.70, but the penetration thus far of the midpoint Hidden Pivot support at 1145.00 is already sufficient for us to infer that more weakness to at least 1082.40 impends. By implication, a rally from around 112o would be ‘mechanically’ shortable, although ‘camouflage’ shorts got a green light on Friday via a signal at 1176.30. A rebound exceeding 1167.90 would reverse the short-term weakness, but traders should be wary of any uptrending abcd pattern that falters at the Hidden Pivot midpoint of its c-d leg. _______ UPDATE (9:15 a.m.): The futures rebounded sharply overnight, turning a selloff into a swoon, albeit a very nasty one. Now, use this true, bullish impulse leg from the 60-minute chart not only to get long, but to gauge the mettle of buyers: a=1167.50 at 8:00 a.m.; b=?.
