We need gold to close above 1187.50 tomorrow to signal that a further upside is possible. We need a daily closing above 1206 to suggest pushing higher. If we can get a weekly closing ABOVE 1210, then we can see a pop up to the key technical resistance at the 1285 area. Caution is ADVISABLE. The further we move up without breaking out, the greater the risk of a very sharp drop into the Benchmarks. As far as a real change in trend is concerned, looking across the global market landscape, not everything is lined up yet to imply such an event. We will let you know if this changes at all. So far, this is nothing unusual.
How markets respond to our Reversal System is also a key factor. At the 1985 low, it took several months to elect a monthly bullish. In the case of 1999, we elected monthly bullish within one month of the low. In this case, we still have not elected any monthly bullish since the July low, which warns that this does not appear to be a change in trend and we still have a few months left.
