The Close

Gold closed just below the 89-week EMA. That confirms the technical nature of a major correction in the gold markets. Should a price close below the previous low, then forecasts such as Sharelynx eWave is busted.

The fractal forecast is now completely busted.

So we have ostensibly completed a 3-wave in the elliot wave pattern scheme. Very probably a 5-wave will develop. The initial outlook that we have a 1-wave extension is still valid, and that you might expect a rolling top 30% above the 3-wave, rather than a huge blow-off top. (some $2500/oz.)

A 5-wave extension can still develop, but gold prices will have to show immense fortitude going forward and completely and unexpectedly reverse prior losses.

The surprise result is the long dated treasury bond price. The long dated treasury is closing above all previous highs, meaning that this is a breakout. GBN.V share prices have suffered accordingly. Venture exchange mining stocks are absolute sitting ducks.

http://quotes.ino.com/chart/index.html?s=CBOT_ZB.M12.E&t=&a=&w=&v=d12

-F6