It is clear from the migration of the HVNs (High Volume Nodes) the short-term trend in Gold is down. Gold is flirting with the late June lows and below those lows the critical intermediate term lows near 1530 come into play. Gold is soon likely to either trade sharply lower to test the May lows, or to begin a sharp rally that takes it to the upper extreme of the present Balance Area near 1640. A trade above 1577 is a signal of a continuation to 1640 or above; a trade below 1563 is a preliminary signal that August Gold will test 1554. A break of 1554 increases the probability of a test of the May lows near 1530.
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Value in the ES has been migrating lower all month. The decline has been a rotational, grinding affair that so far is lacking any big “release”. Breadth is signaling a very sharp move is directly ahead, but the direction cannot be determined. A trade above 1338 signals at least a short-term acceleration higher is underway. A trade below 1319 signals the probability of a test of 1300.