The NEM Lead Indicator = -1.19% Vs The XAU Today

So, there may be a sharp decline in HUI/XAU at some point tomorrow. The short term upcycle that began late yesterday is probably Wave B up of the monthly downcycle that began on 7-12. The Fed's punch spiking the past week was a major factor behind substantial strength in many indexes today because it fueled index fund trading, see http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE.

Right now it looks like Wave B up (of a likely ABC pattern) of the Cyclical Bear Market's (HUI/XAU since 5-11-06) Wave A down probably didn't peak on 7-12 and that the XAU's upside gap at 159.41 from 5-15 probably will get filled. This jives with the Cyclical Bear Market's downtrend line beginning relatively flat, so it makes sense based on the nature of cycles. Wave B will probably be comprised of two monthly cycles rather than just the one monthly upcycle that peaked Wednesday 7-12. ....... http://www.JoeFRocks.com/