Gold should have performed better yesterday with the stock market getting slammed. Instead, the futures sold off moderately overnight, then they stalled after staging a weak recovery early in the regular session. Disappointing as this may have seemed, it left intact two bullish impulse legs, one of large degree, the other minor (see inset). With two bullish patterns driving the rally, it deserves the benefit of the doubt, at least for now. This means we should look for a small rally on Wednesday; or worst-case, a little more weakness and then a bounce from D=1117.70 (good); p2=1122.30 (better); or p=1127.00 (best). The pattern yielding those Hidden Pivots can be found on the 30-minute chart, where a=1146.00 on 9/28 at 4:00 a.m. _______ UPDATE (12:29 a.m. EDT): Tuesday’s bland oscillations changed nothing in the short-term technical picture. The intraday low occurred a single tick from the 1122.30 ‘p2’ support (“better”) given above, but the futures have not yet gained sufficient loft to imply that a meaningful bounce is under way.
