Weekend Update

I was not able to post on Friday but my system moved higher to +1250 on Thursday and to +1275 on Friday keeping the buy signal on. However, the market's unexpected poor reaction to the "great" jobs data should be worrisome for the bulls in the short-term and that coupled with my system at +1275 likely means we are in correction mode and I would expect downside. Buying here at +1275 is not smart because even if the market unexpectedly goes higher, it will have to come right back down as my system can only go as high as +1850 which would never happen anyway. The $HGX has failed in its pattern structure and that means likely downside and aggressive shorts can start in the 79-82 area while you have to be short when it breaks 79. Bottomline, there is likely downside from here but if the market somehow moves higher in the face of all of these bearish technical developments along with the Dollar now surging, then the market will still almost certainly come back to where we are now.