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Reply with quote  #1 
But for now, the trend remains up until proven otherwise.

It was another good week for the bulls with the majority of the breadth chart array moving to new all time highs on Thursday while all of the major price indices closed higher week to week.

Of the ones that didn't make it new highs:

The NYSE Bond CEF advance/decline line looks to be snapping back to what was its longer term trendline that was broken last week, but it still remains 414 net advancing issues from moving to new all time highs. Meanwhile, interest rates on the 10 year notes continue to play the imperfect dance partner in moving opposite of breadth's lead, and will probably continue to do so through the end of the year.

Although the price of gold took it on the chin this past week as it broke below important pattern support, the Precious Metals advance/decline line remained above its all time lows, while the XAU advance/decline line continues to support divergent strength as did the XAU price pattern in and of itself. All in all, this could be part of a more important technical bottom being constructed, but since we've "been there, done that" before, it's probably better to wait for a substantive internal breakout before triggering any new trades in this sector.

Finally, the Aussie advance/decline line had another good week as it continued to move up and away from its intermediate term declining tops line. This recent strength helped the All Ordinaries Index to close at its highest levels since July of 2011. Given the high correlation of the precious metals miners in which this country has strong economic ties, this also provides a sense that the metals, overall, may be in the process of hammering out an important bottom once all of the unwilling sellers capitulate on their ETF's and/or individual holdings here in the states.

We'll see.

Have a great week and a cheerful Christmas holiday!!

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