Early Strength Should Be Followed By Downside Gap Filling Action

Strength in SPX (S & P 500) led to gold/silver stock strength early today due to index fund buying. Wave B up began on Monday 5-22 for HUI/XAU, see http://finance.yahoo.com/q/ta?t=5d&l=off&z=m&q=c&p=&a=m26-12-9%2Cp12%2Cfs%2Cw14&c=&s=%5Exau, with the XAU's cycle low on Monday 5-22 at 133.17 forming a near perfect double bottom with Wednesday 5-24's cycle low at 133.19, and, HUI also has a double bottom. Wave B's Wave 2 down began yesterday for HUI/XAU. Notice how closely the XAU tracked SPX (S & P 500) recently: http://finance.yahoo.com/q/ta?t=5d&s=%5EXAU&l=off&z=m&q=c&a=m26-12-9&a=p12&a=fs&a=w14&c=&c=%5EGSPC.

The NEM Lead Indicator was a slightly bearish -0.21% vs the XAU yesterday. The NEM Lead Indicator was a slightly bullish +0.10% vs the XAU on 5-26, was a bullish +0.29% vs the XAU on 5-25, was a bullish +0.79% vs the XAU on 5-24, a bearish -1.04% vs the XAU on on 5-23, and, was a combined bullish +1.20% the prior two sessions. The XAU has downside gaps at 140.44 from 5-31 and at 135.54 from 5-25 that may get filled in the next few sessions and has a downside gap at 130.03 from 3-24 that shouldn't get filled until Wave C. NEM has downside gaps at 51.40 from 5-31 and at 49.53 from 5-25 that may get filled in the next few sessions. ....... http://www.JoeFRocks.com/