Gold elected a Minor Monthly Bullish Reversal at the end of January giving us a little pause for now. Technically, gold is filling out the pennant formed between the Downtrend Line and Uptrend Line. We have not elected any Weekly Bullish from the December low. We need to close Friday now above 1221 to signal a further advance. Gold bottomed the week of December 12th and a short term Directional Change sent gold higher. The next target was the week of January 16th, which did produce a high and then we say a one-week Knee-Jerk Reaction into the week of January 23rd and then there should have been a bounce into this week of the 30th. Although we need a weekly closing on Friday above 1221, keep in mind that we are also generating supporting a long-term sell signal at the 1272 level. This is warning we are not quite ready for a prime time bull run with our supporting arrow. Our next important Directional Change potential will be April.
The S&P500, Dow, Nasdaq, and Russell
We can see that Market Internals are not indicating a major high by any means. Nevertheless, the vast majority remain bearish and retail participation is still at historic lows for the past 30 years. It still does not appear that the retail surge will come into play until later in the year. So, currently, we should look for ENTRY points on dips.
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