Saturday, March 19, 2016

[GLD] update

At the backlink we had the chart below to which I commented, "Time will tell but don't be surprised if we get a lower low here; I view it as the most likely outcome based on this EW model":

Since then we got a pullback right down to support.  In addition I found a second model that also fits the view of more pullback to come.  I would not be surprised to see this pull back to the 50 fib but the 38.2 will be my first target. 

But first it has to break that important support (lower green rail).  If that falls away on Monday with a gap down, buy the dip in JDST.  The fact that this could possible count as a failed 5th of red 5 means that if it does break down then it will probably do so with gusto.

Zooming way in on what transpired just after red 5 we see that chart looks motive downward and corrective upward to the 50 fib.  Odds favor those who bought JDST and held over the weekend.  I suspect gap down for GLD on Monday.

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