Wednesday Update

My system moved higher yesterday to just under +1050 and moved back down to +1025 today putting on a weak sell signal that needs a confirmation down day tomorrow. My last post has turned out to be fairly accurate with the $HGX topping at 91.60 today right near its 200 day SMA before reversing. As soon as it broke 90 I started taking profits and I expect a test of the 80-82 area next week. If that test is successful, there is going to be a large rally that will break 100 in the first three weeks of June which is a 25%+ move higher from the testing area. This test next week will once and for all confirm or deny whether it's a cyclical bull market and I would be ready to pounce in a very aggressive way if the test holds. The test could break the recent low in order to get investors to go the wrong way before it reverses. If I'm wrong and the $HGX moves straight up now, then I would be convinced of a move now through 100 if it can hit 97 but this scenario is very unlikely. The one interesting thing today was the currency market where the Dollar followed through on its downtrend after finding resistance at the 200 day SMA and this occurred even as equities fell which could be a sign that this correlation of higher Dollar/lower equities is breaking down but we'll have to watch this going forward.