………..NEM Scare Again, Hitting 46.22 Again Today

NEM was affected by S & P 500 weakness again today since NEM is in the S & P 500 and SPX index funds were selling early today. NEM’s short term cycle low at 46.09 on 11-30 must hold or the monthly cycle has almost certainly turned down. NEM plunged from an early high at 46.88 to 46.22 providing another big scare similar to Friday’s when it also plunged to 46.22.

The indicators pointed to some weakness today. The NEM Lead Indicator was -0.05% vs. the XAU on Friday, but is about +0.25% vs. the XAU as I write this, which points to strength. XAU Implied Volatility fell -1.09% to 29.435 on Friday 12-2 from 29.760 on 12-1 versus a -1.62% decline in the XAU on 12-2, which is a sharp (2-2.99%) 2.71% rise in complacency (-1.09% + -1.62% = -2.71%. The XAU wall of worry shrank by -2.71%, therefore complacency rose by +2.71%) that portends weakness/a downtrend during part of Monday 12-5's session. The XAU Put/Call Ratio fell to 0.61040 today vs. 0.61331 on Friday which pointed to some weakness today. Ciao.