Is Today The Day ?

Is today the day we find out who’s really in control?

The day where it’s either inflation or deflation?

It’s about 30-minutes before the open.

Pre-market action has gold (GLD), right at the Fibonacci 50% retrace level shown in the 4-Hour chart.

Gold (GLD) 4-Hour

Looking at the chart we see the following:

The up-thrust from November, was an island gap reversal (bearish).

During the Fed announcement (Wednesday, the 15th), price action penetrated weekly lows and set up a spring condition (bullish).

We’re at Fibonacci Day 3, of the spring and current trading at 50% retrace in the pre-market (neutral).

Pre-market trading is at an axis line which also indicated prior resistance on November 30th (bearish).

If price action opens or trades at the 50% level, it would also up-thrust the November 30th print high; therefore, creating a potential reversal condition (bearish).

Summary:

There’s a lot going on in the gold market.

The ‘man on the street’ YouTubers are screaming inflation and the need to “exit the system”.

That’s a great idea (exit). Just exactly how does that work anyway? A topic for another time.

Meanwhile, here we are.

We’re doing what price action’s telling us to do. That is, stay short until proven wrong (not advice, not a recommendation).

That proof, for bulls or bears could come today.

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

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