On May 3rd, 2016, the DXY broke through a long standing down-trend at $94.30 (reversing to up). I do not think it is coincidence that gold-shares reversed on this day.
Gold-miners shares, such as GDX , were hit harder.
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP.
Here are "Don's Top Ten Technicals": 1. The is not yet SINKING, BUT the has been breached to the down-side. 2. Prices are falling BELOW the cloud. 3. Prices are falling BELOW the thick red Conversion line. 4. The thick red conversion line is moving LOWER. 5. The thick black line is the Ki-Jun-Sen baseline of the and this is HEADING DOWN. 6. The indicator on the top of the page is / , and this is FAILING. 7. The top-side middle indicator is and this is NEGATIVE (red over green). 8. The Top (bar-type) indicator measures the "phase energy", and this HAS CONTINUED BELOW THE ZERO LINE FOR THE ENTIRE MONTH OF MAY. This suggests the selling has more to go.
9. The red arrows (not pictured) are DOWN.
10. Look to the far right on the chart, around $120.00. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are OPEN, correct? This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a NOW AWAKE, FEEDING , and the will continue to feed into the DOWN-TREND.
If you are a gold-bug, I think you will face weaker prices. Please go to chart two of this series, DXY . May all of your trades go well. Don.