The failure to fully correct down to our target at 1302.70 is bullish. Accordingly, I’d suggest using the rally pattern shown to trade this vehicle today. The futures were already a ‘mechanical’ buy on the pullback to the green line (1317.10), but they could become so again on a retracement to p=1319.60 if you’re looking to get long belatedly. A decisive push past the red line, a midpoint Hidden Pivot resistance at 1319.60, would make a follow-through to the 1324.50 target an odds-on bet. _______ UPDATE (9:16 a.m.): The usual bunch of halfwits, harlequins and headless chickens sent gold into wild spasms on alleged ‘news’ this morning that the U.S. supposedly had added a mere 151,000 McJobs last month. In current Wall Street semiotics, this supposedly signifies that there is less chance the Fed will tighten soon — something that anyone not from Mars or sitting on the Fed board of governors would already know. Gold’s histrionics ended with the futures moderately higher, although they got there via a route very different from the abc pattern I’d sketched. To get a handle on the rally, I suggest using these coordinates on the 15-minute chart: a=1307.40 (8:45 a.m. EDT); b=1334.00 (8:45); c=as yet unformed.
