Gold finished its retracement from its massive Head and Shoulders neckline to its 200 day moving average. There is much ado in zero hedge about this being a major bullish accomplishment. It's not.
My last interpretation of the cycles model for gold suggested a low on the 21st. Since tomorrow is a major turn date, it looks an awful lot like a high, instead. This raises the likelihood that the decline will continue into the last week of January.
The NDX also retested mid-cycle resistance at 2286.32. Although the retracement was a bit stronger-than-expected, today's move adds validity to the concept of support and resistance as it relates to the cycles. There is a probability that tomorrow morning may see a brief zig zag in equities before the reversal back into the decline, which may last into next mid-week.
Finally,the USD retraced to its cycle top resistance and Head & Shoulders neckline at 79.76 today. The retracement is complete. The next wave higher may begin.
