Still on hospital duty for the next couple of days, so this post will be brief.

As we discussed yesterday, gold and the USD had reached a crossroads.  One had to win (break out), and the other lose (break down.)  It’s ironic that gold lost this particular battle, as the next CPI data we see will surprise to the upside.  Just another day in the Fun House the Fed built.

Gold traders and stackers are perfectly justified in crying “foul,” but it’s hardly the first time someone learned the hard way not to fight the Fed.

continued for members…The USDJPY is testing the latest falling channel.  If it reverses, GC still has a chance.  Remember the yellow TL from 2007, currently around 1250.  As long as GC remains above it, I’d want to be long.  Below it, gold should be shorted with a target of 1238ish.Likewise, DXY faces a test of the falling white channel .786.  It’s technically a backtest, so this is another important crossroads.  A failure to retake 93.60 would mean DXY’s lower targets are still in play after this, a corrective wave.

RB has pushed back above its SMA100, meaning that bounce up to 1.75 is looking better all the time.  If it falls back below it, then 1.65 and 1.64 are still on deck.CL seems to be adhering to the Fib fans laid out below.  It has a lot further to go if the Fed is to avoid strong inflation in December, too.  But, it won’t dare do so unless USDJPY breaks out. The latest on VIX, which is backtesting the SMA200.  It remains the second most important support/resistance on the chart (next to the yellow channel bottom up at 11.35.  I’d want to be long on a move above it and especially above 11.35.