A nasty swoon early in yesterday’s session was reduced to a mere palpitation on the intraday charts by day’s end (see inset). After the fall, the futures quickly returned to their soporific glide path, presumably after a large seller with urgent needs had done his business. The price action seems neither bullish nor bearish, although those who sold near the lows will probably be wary of getting knee-capped again on Friday. My bias is ever-so-mildly bullish because of this, but night owls may not find it easy to get aboard, since, early Thursday evening, even the very subtlest ‘camouflage’ entry opportunities were not panning out as we might wish them to. ______ UPDATE (June 1, 10:04 a.m.): Although the Whoopee Cushion rally in the early minutes of today’s regular session may have been predictable as to the time of day it occurred, it was untradable nonetheless. We’ve learned not to look for a follow-through, at least on the same day. Technically speaking, the rally will remain gratuitous unless it closes above 1210.90, a midpoint Hidden Pivot tied to D=1237.80 on the daily chart. _______ UPDATE (June 1, 9:23 p.m.): Yesterday’s $18 hump was even bigger, stupider and more pointless than last Thursday’s $10 swoon. Perhaps with June options out of the way, gold futures can return to business as usual? If so, we should prepare for lower prices punctuated by occasional spasms higher. Wait, isn’t that what we’re trying to put behind us? What might brighten the short-term outlook? Most immediately, a pop above 1207.20, a midpoint resistance that is nicely visible on the 180-minute chart. (A=1178.90 on 5/11). That would put a 1234.10 target in play.
