This is the March 2019 contract where every trader has to move to sooner or later. Support has now failed as the Fed has threatened more rate hikes in 2019. I find this very strange at this time as many asset classes are already crashing and liquidity is draining the life-blood out of the economy. Nobody is lining up to borrow more money and gold is not going to soar to the moon. Gold sure didn’t like the rate hike, which I will update later this week. In the end the Fed has executed the perfect stock market bull trap. The majority all believe that just a simple 10% correction was coming, but they under estimating the size or degree of this impending correction. They won’t call it a correction much longer as every hope for support will get dashed.
I might add a few more of these intraday charts on this page as the days of seeing sets of 1-2 waves is going to come to an end. Wave 3 will come to an end and the degrees will start to get higher each time a run of 5 completes. This is a wave three extension in progress but heading down. In bull markets the entire wave structures are reversed.
Only 49% are bullish towards the SP500 Market Vane Report, which is not extreme just yet. The Death Cross on the daily SP500 chart happened at the 2770 price level, with the Gold/SP500 ratio sitting at a perfect 2:1. It takes 2 gold Troy ounces to buy one unit of the SP500.
Besides all these negative indicators the commercial hedgers are still net short by a good amount.
It will take far more downside to get the commercials to change direction. Even then there is no guarantee that commercial hedgers will pile into long positions.