When we look at the gold market, you can see that the market has come back up. You’re sitting here up 1.29% for the week — that’s not bad action at all. When we look at the chart of the gold, though, the market tried a big up yesterday, and if you take a look at how many points it was up, 37. Today, the market is down 46. So it gave back everything that it had, and it had an outside day to the downside. If you look at yesterday’s low, it was $3394.90. And today, you close at $3397.80. See, you didn’t quite close underneath the low of that. That just means to me it’s a pullback in a market that got ahead of itself.
When we take a look at the swing line, the swing line is sort of confirming that, having the higher lows and higher highs. When we take a look at where the support might come in—well, it could be down another 40, 50 dollars: $3357. The market is fighting a battle because each time it gets up to the upper Bollinger Band, it is giving up an awful lot there. You can see what I mean by that. It gets thrown back by staying over it, and that just means market’s it’s not ready to go up and out.
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