Yesterday was unexpected, but not enough to break the YTD downtrend across all market indices. In a vacuum it was bullish, in the context of news and EW big picture analysis, an annoyance near a major turning point. If the latter, the implications for the next leg down become even more dramatic as should yesterday's gains get erased in the days ahead, the underlying conditions for investor panic will be in place. Needless to say, the next few days are critical. GLD: Buy Pending > $165 We are waiting for GLD to breakout of its Wave 5 channel, which when accompanied by a divergence in the bottom Elliott Oscillator (new low for GLD, but no new low for EO) is a high probability trade to the area of the previous Wave 4 high, or about $175. The better news is that Gold is a beaten down sector with very low bullish sentiment, setting the table for potentially an even larger rally. Buy Signal Pending on GLD close > $165 Option: Sep 16th $165C (3.05-3.15) Target: GLD > $175; $165C > $10 Stop: -50% on call
