[GLD] update

Every GLD model looks like Hell except one and that is the model of the expanding wedge.  Today's massive drop in silver and gold can only be explained by the expanding wedge model which I provided here.  Obviously, I modeled the breakout too early in that post.  Today's drop only makes the model look more natural. 

Note that the bottom point in Nov 2014 is not part of the current wave.  That is why I purposely did not use it in the last post.  The end point of the last wave often helps determine support and resistance in the current wave but it is not part of the current wave.

Bottom line, the chart may get a bit closer to the lower rail, maybe even touch it, but then it is most likely going to reverse upward with authority as shown.  As soon as this breaks out the top orange line, the next wave up will be on.  The chart should not fall below that orange line or something very bearish is likely playing out. 

The wedge model above consisting of 5 blue waves could be motive since it is the the wave 1 position but it could also be corrective.  The move to the top will be 3 waves as shown and be it known in advance that wave 5 of an expanding wedge is one of the fastest moving waves there is all told.  Expanding wedges are not very common but I'm finding it difficult counting this any other way at this point.

If this wave turns out to be corrective then it falls right into Prechter's model for the big B wave shown below.  If this happens, the low for gold could be as low as $700.  But we can cross that bridge when we come to it.  For now, keep looking for a bottom in GLD.  It should be coming