Gold Did Nothing, But Still Bearish; April 9, 2009

Gold did nothing today so there's nothing new to report other than yesterday it made a feeble attempt to break above $890 and stay there and has now started to decline towards the next support level at $830. As long as $890 is significantly broken and held, gold is immediately bearish in my view.

I'm still heavily short and will remain short until I'm stopped out or a strong rally changes the outlook of wave and technical structure. As long as the metal remains solidly beneath $890, I fell comfortable holding short. A strong break and close above $890 will bring extreme caution. My initial target is still the $890 area, but possibly much much lower.