Still Trying For A Bounce

With the deeper drop in gold this past week, it left me wondering if gold wanted to form an ending diagonal for the (c) wave, or if it was going to develop more of a b-wave within a larger (b) wave. As it stands right now, as long as the overnight low holds, we seem to be set up again for a c-wave rally to complete a more complex (b) wave. However, should gold break down below the overnight low, then the probabilities shift towards an ending diagonal for the (c) wave and potentially seeing this correction complete a lot sooner.

GDX and silver are not quite as clear as they seem much more overlapping for the start of a c-wave. However, there is potential that they follow gold but only as ending diagonals in their respective c-wave rallies.

As I also noted in the live video this morning to those that attended, GDX can see a higher high (the c-wave target would be 104-107) and that would make the yellow count potential significantly less likely at that point. Moreover, as it stands now, the yellow count is much less likely since the initial drop in GDX counts best as a 3-wave structure.

In the bigger picture, I still am expecting one more decline leg before this correction is over. And, for now, I am still not seeing strong evidence pointing to lower lows yet.