I thought the stock market made a top. How much more fuel left is the unknown X factor. If Nasdaq takes out its old highs then I will have to be left wondering what happens next, maybe Dow double to 52,k? For one thing I think the commodities like gold should do well as the middle class gets squeezed to the barebones.
Thanks, I noticed that triangle too. The problem is that gold often breaks down from formations that SHOULD be bullish. I'll be watching for the break out of the formation, either up or down. My thoughts are that if it is indeed bullish, it could finally take us over 1400.
@Goldhedge I think we closed the day right at one horizontal support area. (Draw a horizontal line from today's low back to earlier support in late January), but it doesn't look like strong support to me. I think the line you drew is indeed the most obvious support area, without resorting to fibonacci. JMHO.
Last CoT was dec 18th and funds were going crazy adding longs, commercials and especially banks getting short. It's reasonable to assume this has continued with goldies $40 higher.
Techs and pattern are very bearish, imo
Hence, I would have to think the next significant short term move is down, with 1330 or so still on the table, but 1296 top of the box.
That said, my orginal thesis was summer july low (came two weeks late august) with april/may 19 being the next significant top before the next big sell off. So it could take a while to play out. Hence why i was still debating.