Gold ripped bulls a new orifice today, crashing a midpoint Hidden Pivot support at 1192.50 and greasing the skids to the 1140.30 target shown (see inset). The breach of the midpoint was sufficiently blunt that we can infer further slippage to at least 1140.30 is very likely. The December futures will have a chance to bounce from the ‘secondary pivot’ at 1166.40, but I wouldn’t count too heavily on it. A rally back up to the green line (1218.60) would signal a mechanical short, stop 1244.80. ______ UPDATE (August 16, 9:10 a.m. EDT): The futures have bounced from 1167.10, less than a dollar from the secondary pivot noted above, after being down more than $17 overnight. The yellow flag is still out, and the 1140.30 target will remain valid in theory until such time as 1244.70 is exceeded to the upside.
