Sellers Have More Work to Do (in Gold, as Well)

Yesterday’s rally may have seemed encouraging, but I view it as a reflexive bounce from Friday’s oversold lows. Sellers are not done, I would surmise, and evidence of this was visible Monday in the failure of the E-Mini S&P to reach a modest rally target on top of gains it had racked up earlier in the session. Separately, gold’s sloppy price action gave paradoxical clarity to a downtrend that projects to as low as 1140.00 over the near term.