It is not surprising that the market has found support here and a clear 5 wave count can be formed on the 4 hour chart, so a corrective move higher is likely over the next day or two.
Equities remain the favoured asset class, with the S&P and Dow at all time highs. The dollar has rallied impressively after briefly dropping below 80 on 1 July, with the dollar now trading above 80.50.
Oil has tumbled below $100 a barrel again, though formed a "hammer" candlestick on the daily chart yesterday after a sustained decline, suggesting a low may be in.
Support can be found at 1292, 1285, 1263, 1257-1260, 1250-1252, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term - however the break below 1250 seems to have been invalidated, indicating that a return to 1180 is now less likely.
Resistance can be found at 1299-1301, 1310, 1314, 1318-1322, 1325-1326, 1333-1335, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We appear to be wtinessing a second failure to break through the key 65 week MA - this would suggest that the intermediate down trend is intact and a retest of 1240 and possibly 1180 is likely.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.