UPDATE: 1:00 PM
Unless/until 1333 is taken out, we’re calling that the Wave 2 top. The wave action since then has been garbled, meaning it could be interpreted in a number of ways. We’ll know soon enough, though, whether the 88.6% retracement of 1333 – 1300 was a corrective wave (if 1333 was the top) or another impulse wave — in which case it’ll exceed 1333.
The run from 1300 to 1329 looks like a corrective A-B-C wave to me, but a move back above 1333 will prove that wrong. On the other hand, a move below 1321.41 will pretty much kill the idea of a nice neat 5 wave impulse.
Notice the RSI trend lines on the 5 min chart offer two options. RSI can continue to bounce along on the underbelly of TL A, going higher and potentially testing 1333. Or, it has the perfect opportunity to follow TL B down, testing 1321.41. It’s not an ironclad test, but it’s a pretty good indication.
ITM, gold has backed off its earlier highs.
Gold has pushed about as far as it can go without breaking through what I believe is a back test of the last fan line. It’s also stalled at the .382 Fib line of the Crab pattern and is showing strong negative divergence on the 60-min chart.