After such a healthy run up in two segments,
the urge to take profits is extreme with day traders.
Also gold is running into resistance. As Dan Norcini
has told us repeatedly, there is major resistance at
the 780 level, and also gold needs to hold above 750
for at least a day. As I type gold is moving up and out
of the down flag. I don't see any other markets that
would cause a gold breakout. Dollar isn't really dropping,
Stocks are dropping, bonds are pulling back from their highs,
Euro isn't rising, so gold is sort of on its own right now.
A good deal of today's run up is probably shorts covering
out of panic to not get wiped out as the market moved up
boldly on the open.