I doubt if many people have noticed this – but the Dow has formed a large head-and-shoulders bottom. As a rule, once this pattern has broken out topside, the item will rise about the same distance from the neckline to the head. This would allow for the Dow to rise a considerable distance from its current high point.
There’s no particular reason or rationale for the projected rise, it’s simply a product of technical analysis.
Turning to the precious metals, here again the technicals prevail. For instance, before gold can advance, it must build a suitable base. Gold is now in the process of building a huge base. The P&F chart below … (as a rule, the larger the base, usually the greater the rise).
Half an hour before the close, the whole gold universe was higher. GDX was up .41 and GDXJ was up 1.7 to 35.95. A bullish signal will be ... Log in or subscribe to continue reading.