Bulls Still Look Frisky

A pullback is underway; the first since this leg of the rally started on September 2. Although we broke below the TD Demand Line (dashed up sloping green line) yesterday the market did rally back to close above it. To confirm the demand line break we must make a lower low today, otherwise the bulls may very well make a move for the Supply Line at 1073.06. Will this pullback be just a momentary setback in the bullish stampede?

Even though we are working off of a complete a TD Sequential Reinforcement (otherwise known as a 9-13-9 “sell” pattern) my price pulse work insists that a new high is required before any talk of a significant correction can begin.

Bottom Line: Still bullish until we see a price above 1074.77 recorded. Without such a move any decline here should be considered a pullback within the on-going bull run. It would take a move below the September 2 low to change my mind.

P.S. on the World Gold Index. A down trending day but not overly convincing. We found support at the 23.6% fib level and the short moving average. Generally speaking, I am currently neutral on this market and looking for sideways-to-down movement over the next few weeks. I will update again as conditions warrant.