1:05 pm PST. The Dow and U.S. core indices sold off into the close as traders understandably took profits off the table. It has been quite a run! I think the wave (iv) correction can start at anytime. I am seeing a lot more newsletter posts about “if you missed this rally you can still buy”, etc. I think people are starting to realize what they have missed. There is an outside possibility that SPX could make one more high to 2410 on negative divergence next week, and then corrective wave (iv) could start. It is interesting that TLT and the VXX never made a new low while the indices rocketed higher yesterday.

Silver broke down very quickly today. I was short GLD off those IAU prints, but it would have been interesting to consider shorting silver too. lol. I am still a bear on silver. The precious metals are going to have to do some bottoming work.

7:37 am PST. The IAU, gold trust etf, had two massive prints this morning. The biggest I have ever seen at 11.93 for a total of 17.2 million shares block traded. Bullish above, bearish below. It looks like IAU is now backtesting the broken trendline. If the trendline rejects and we close below these prints, look out below.

5:45 am PST. Gold futures are selling off and broke briefly down from the rising uptrendline. If we close below, I expect gold to retrace for the next week or so to $1211. GLD to 114-115. Dow futures continue higher.

1:00 Wow, what a day. SPX tagged 2400.98, almost reached the fibonacci 3.62 ratio of 666 at 2410. The banks were on a roll today! I exited my XLF, not that I think the rally is over yet. BAC still has upside.

Gold looks interestingly bullish for tomorrow. The miners made a really nice comeback closing in the green.

10:09 am PST. GDX break above upper trendline on the wedge confirms wave 3 on, and capitulation low in, which means a rising triangle for gold and silver.

9:03 am PST. TLT is now hovering weakly above the lower trendline which is about to break. Once TLT breaks it will probably back test it from below, and then it is going to have a drop to fresh new lows. Meanwhile, financials, and the core U.S. indices will continue to rally.

Gold, GLD, is bouncing off this rising trendline. Once this breaks, I think gold could see $1211 this month.

7:13 am PST. XLF is up really nicely today. I am looking for $26 where I plan to exit.

5:34 am PST. If TLT breaks below the lower trendline on the wedge, it is headed to new lows.

5:24 am PST.

XLF and the U.S. core indices are having a nice pop higher as expected. Gold is down at 1241.10 now as expected. The dollar is rallying and could go to new highs.