Downside Set Up - Market Analysis for Jun 2nd, 2015

Downside Set Up

I am sending this out as a Market Update since I need everyone to be aware of the potential bearish set up in the GLD.  While I have made my issues about the downside pattern quite clear over the weekend, the market has provided more information to take me to a higher DEFCON level.  As you can see from the chart, we COULD count a full 5 waves down in GLD (but not silver).  Since that time, we have had a clear 3 wave rally right to the .500 retracement of the initial downswing. 

What I am trying to say is that unless the market is able to move through yesterday's high, with strong follow through over 116.,20, a break of the last lows (113.20) will have us pointing to at least the 110 region in the red count, and potentially much lower . . like on our way to the final lows.