Gold closed sharply lower today, retreating from recent all-time highs of the secular bull market and beginning a test of support at the lower boundary of the power uptrend from early August. Although technical indicators remain moderately bullish overall on the daily chart, the rally has been advancing at an unsustainable rate since early July and it will almost certainly be followed by a violent overbought correction.
The sharp retracement today resulted in the generation of a cycle high signal, indicating that the Beta High (NYSE:BH) of the current short-term cycle formed yesterday.
The next Short-Term Cycle low (STCL) will likely form sometime during the next three sessions and it will be important to monitor market behavior for signs of a cycle translation change. We will identify the key developments as they occur in our daily commentary available to subscribers.
Subscribe to our RSS feed to receive our free daily market update.