Seventh Consecutive Higher High

Yesterday we had our seventh consecutive session with a higher high although the session started out with a downward bias. This foray into negative territory was brief and most likely the only immediate response to the RSI divergence (mentioned yesterday) that the bears could muster. The bulls then rallied and won the day.

Even so, I feel that the “tension” continues to grow here between the two opposing camps as the struggle over the 1062.74 and 1063.01 levels heats up. As that battle goes on we are now at bar #5 of a potential 9-13-9 “sell” pattern. If this pattern is to play out the bulls will need to keep the rally going through the rest of the week. To get bar #6 today requires a close above 1033.37.

Bottom Line: Still bullish until after September 21 (Autumnal Equinox) at which time I will re-evaluate. Watching closely to see whether 1063.01 can be broken.

P.S. on the World Gold Index. Not only have we perfected a 9 bar TD Sell Setup on the daily chart but yesterday saw a TD Sequential “sell” countdown complete. However; please note that a qualified and confirmed break above 1010.24 would cancel that situation. Until we get further proof to support the bearish case I still have no incentive to be outright negative on this market. If I was long I would be thinking about my stops very carefully.