[GLD] update

GLD is not confirming the new low for JNUG.  First, GLD formed 5 waves up and in doing so it broke the top resistance rail with a nice stab.  First waves generally don't have the power to break and hold such major resistance; that has been discussed in these pages many times.  The wave has to take a retracement step back and get a running start at it.  I think we are getting very close to 5 of C of 2 in GLD.  If this plays out per the model, the next move up should be rapid, perhaps based on some kind of new about an official push out in interest rates would be a wild guess on that but it is not needed.  The market will turn with or without news.  But if you can get news + a good EW pattern then who's to complain.

In any case, GLD is right at the gap fill point which is always a good place to reverse.  The next two candidates would be the 61.8 fib and then of course the level of the prior 4th.  JNUG should be bottoming along with it.  JNUG might even close green if it can bottom before 10am central.  It's currently down 11.58% so for most people this might seem an unlikely call.  Time will tell.