September 17, 2020 - (Gold Market Wire) - Another day, another upside head-fake. Yesterday's chart was strictly in the Kabuki tradition and was yet another false signal that the bull was back in motion. It wasn't. As we pointed out yesterday, we were looking for a close above $1975 - the down trending line - and in the end, we got $1959.93. Failure. That signaled that the rally was another head-fake and today's follow through to the downside proved the point.

‍

We're back in the box again this European a.m., drifting between $1927 and $1956. Until we break out of this pattern decisively, all else is noise. We need to pay attention to our 50-day moving average (in orange), as its been a strong indicator for the market. We have spent very little time under this marker in the past 6-months. Other than the "march Madness", the last move under was swiftly recovered. A strong break of the 50-day m.a. could be the harbinger of a shake out. That will mean standing firmly aside (as we are now) and waiting for the train to pass. Then, when everyone is bleeding on thefloor from poorly placed length and being forced out from excessive margin, we'll step in.

That opportunity may be coming soon.