Both Friday and Tuesday generated downside Capitulation Alerts in the US Dollar Index and upside Exhaustion Alerts in the Euro. In the eleven instances (dating back to 1975) where gold was trending higher, above a rising 200-day moving average, and the US Dollar Index generated a downside Capitulation Alert the bullion made an interim top shortly thereafter.
The number of days and percentage that gold moved higher following the alert had a direct correlation with the depth of the correction. No rally extended more than eight trading days (Oct 13 th?). Once the top was in place the drop to the 50-day moving average occurred within 14 trading days. The moving average sits at $1262 and is rising at $3 per day.
…..read pages 2-4 HERE
For Intitutional Investors – the Technical observations or RossClark@shaw.ca