UPDATE: 1:50 PM
So far, so good on GC.
UPDATE: 12:00 PM
SPX very quiet after falling off 45 points in the opening hours. Looks like it’s trying to get the c leg of wave 4 going.
GC has had what looks like a blow-off morning. It looked like it was going to complete a triple top, then quickly shot up for another $20, only to quickly reverse. It continues to show a great deal of negative divergence on the hourly chart, not to mention a bearish rising wedge.
Just a reminder: it’s completing a bearish crab pattern inside a larger bearish butterfly pattern [see: All That Glitters.] We’ve seen from DX this morning the kind of powerful reversal that butterfly patterns can generate.
DX turned exactly on the internal trend line we were watching yesterday. It’s highlighted here as the red dashed line.
Backing up a bit, we can see this is actually a fan line from the Mar 09 top.
And, last, the 60 minute chart. Note the turn at the TL and the powerful reversal that butterfly patterns can create.
ORIGINAL POST: 3:15 AM
This corrective wave [iv] should run out of juice somewhere around 1229. Failing that, the upper limit is 1255. Wave [v] down should be gentler than [iii], possibly reaching only a bit lower — say 1089.
More in the morning.