We have not seen these levels of sentiment since the bear market gold bottom more than two and a half years ago. The gold bottom in fact may have occurred on the 19th of this month. It will be interesting to see if the lows get tested this week. Remember the longer the lows stay intact, the more likely that the intermediate bottom is in. Why? Well this intermediate cycle is long in the tooth as it is. We are well overdue an intermediate correction due to the last clear bottom taking place last December.
Sentiment & The Gold Bottom
Aggressive traders could place stops below the lows last Thursday. Usually the thrust out of an intermediate bottom is very powerful. As mentioned, we have had multiple intermediate gold bottoms since December 2015 and none of them have retraced to sentiment levels this bearish. We have a daily swing in place. Honor stops though at all costs.
Honor Stops on Gold Bottom below Thursday’s lows
