Weak SPX (S & P 500) Equals Weak HUI/NEM/XAU
It doesn't take much SPX weakness to result in significant % changes in HUI/NEM/XAU due to the large scale index fund trading going on and the relatively small size of the gold/silver stock market, see http://finance.yahoo.com/q/ta?s=%5EXAU&t=5d&l=off&z=l&q=l&p=&a=m26-12-9,m26-12-9,p12,m26-12-9,p12,fs,m26-12-9,p12,fs,w14&c=%5EGSPC.
The Wave 2 Short Term Downcycle since early Thursday is probably doing an Elliot Wave ABC down up down pattern with Thursday being Wave A down and Friday/Monday being Wave B up, so, today should be Wave C (a sharp decline is likely). The XAU has a downside gap from Friday's open at 137.26 that may get filled today. It's a large enough gap that it could be a breakaway gap however. ....... http://www.JoeFRocks.com/
The Wave 2 Short Term Downcycle since early Thursday is probably doing an Elliot Wave ABC down up down pattern with Thursday being Wave A down and Friday/Monday being Wave B up, so, today should be Wave C (a sharp decline is likely). The XAU has a downside gap from Friday's open at 137.26 that may get filled today. It's a large enough gap that it could be a breakaway gap however. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
7:09 AM
