I was just looking at the 200 week MA for the last decade, and it has done a pretty good job of defining bull and bear markets. Perhaps more importantly, you can see how it was respected at the 1219.80 pivot. So any pullback now should get support at the 200 week which is currently at 1192. A test of the 200 week that fails would be well worth taking note of. As you can see historically, there are times that we get false breaks in both directions, but given how precisely it was respected a few quarters ago, I think we should consider it a major player to watch.

Gosh, I don't know why CA Muni holders are worried -- although Congress won't help CA, we can all count on the FED to add all the bad Muni debt in the country to their balance sheet. No worries...

RP -- thanks for your thoughts -- I think you're right about how powerful it would be if we got a gap down tomorrow as a follow-on. And from a fundamental POV, it looks like the Chinese are making a point that is being heard with their interest-rate move. They have decided to take on the FED and the ECB -- the question is who will blink in this game of chicken?

My question is really one of definitions -- If Gold were to continue on down from here, do we have an "authentic" island reversal here (there is space that looks like an island), but the first down bar has a slight overlap with the previous bar, and is not a textbook gap beneath the previous action -- any thoughts? And does it matter?

1340 continues to look like a reasonable objective in the short term.

Matt -- these alarms sound great!!! Will they be going off at the same time the Email/Text alerts go out, or is that a separate functionality?

Hi Michael -- you may well be right, those reversal candles were extremely ugly -- but the action of the last couple of days, in spite of dollar STRENGTH -- has gotten my attention. And I am wondering if we might not be starting to see gold react just as much or more to currency problems in Europe (Irish bailout, etc.). I am simply sitting on my large, core bullion position, which I have added to pretty relentlessly over the last year, but I'm hesitant to put on any kind of swing trade short (not talking about a quick day trade), in spite of the parabolic run, simply because the PM markets are in such incredibly strong uptrends.

Yes, I meant given the strength of the dollar -- sorry, my brain got inverted! Thanks for the correction.

Makes me wonder if we aren't getting a short high-level consolidation before yet another leg up. 

Also wondering if the PMs aren't starting to react to currency issues in Euroland

You gotta see this

Measures to about 1360, could get there quickly if dollar continues to sell-off overnight.

This pieceis hysterical, but sadly true

Might make for an interesting morning

This piece sums up the impossible position they have created

Matt -- I agree, we could get a 5th wave that pokes us up through the upper TL before the MACD actually crosses, but as you say, the divergence is pretty much baked-in. Helicopter Ben is creating some mighty interesting charts!

If it played out it would measure down to 1260-1270 which of course would be logical and strong support