November 27, 2020 - (Gold Market Wire) - The New York opening has sent Gold reeling into negative territory, as support fails again. The chart paints the picture:

The first line in the chart above is our new resistance line - $1818 and the lower line is $1787, the support line we identified earlier in the week, and which is failing now, as we speak. We retain our 2/3 short position, established when we went through $1850. We see no need to cover now - the market is likely heading lower.

On November 19, we penned "The rally we looked for has failed - completely, and $1850 is about to come under attack, we feel. This is a bearish set-up of some significance. Wild eyed gamblers should stand by and get ready to run short. Regular traders can spec short, and investors should neutralize length and stand aside if they can. ... The market is weak - and prone to a sharp move lower. " Well, we have certainly got it now.

On Wednesday we identified the support lines as follows:

The question being asked by all is whether this is the end of the bull market, and it is certainly a fair question. The reality is, there is no way to tell. But if all three of our support lines fall, it will increase the odds that this 21-year old bull market has come to an end. This will have to be balanced against the reality that a monetary crisis par excellence is waiting in the wings, and is likely to erupt any time now. The Bull is long in the tooth, no doubt, but usually saves its "best", most outrageous behavior for a last, final flourish. We must also realize that previous bull markets have seen enormous shake outs prior to "moon launches".

From the trading side, we will take it one day at a time. And right now that means running the short position. There will be plenty of time to re-assess when the market stabilizes, but to re-iterate a previous outlook of ours; Presently, until the market regains $1850, there is little reason to establish any length.

The market is weak... and that is all we need to know to trade it.