6/20/2014 5:51:59 AM

Good morning traders,

As the markets digest the Fed speak, the largest move can be seen in gold. But as with any move, you have to think, is it terminal or initiating.

So we are leaning towards this pattern in gold being topping, unless some black swan event starts moving into the market, which would cause gold to rise above the one year consolidation.

As for the markets retesting their highs, which is perfectly normal action for tops, here's the barometer:

This has happened at the last 2 tops, so it's not a surprise as much as a process to deal with. As always, maintain proper money management/stops and we expect lower prices (or a muted move higher) over the next month.

Regards,