All early trend break outs get a test, and when that happens we just have to wait for the results.

CAUTION: Charts below are gold in USD.

If the test fails, well that could be another story. One could suspect a move higher in early 2017.

Channel challenge...

SMA SQUEEZE...

Cycle bottom

In short, charts may help with timing but they dont matter when you know that there are several TRILLION DOLLAR debt bombs around the world that could blow up at any time. If gold falls below $1000 USD then that is a life time BUY, and a steal.

A few trillion dollar debt bombs that the Central bankers would struggle with:

- Emerging market debt (inc China)
- US Student and car loan debt
- Derivatives (interest rate swaps)
- Corporate credit
- Europe Bond market
- US Treasury Bond market
- Japan's bond market

Investing Quote...

"Frequent requests are made for the name of someone who will teach the Art of Tape Reading. I do not know of anyone able to read the tape with profit who is willing to become an instructor. The reason is very simple. Profits from the tape far exceed anything that might be earned by charging tuition fees to his students. Its simple economics." ~ Richard D Wyckoff

"The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell." ~ John Templeton

"The four most dangerous words in investing are 'This time it's different'." ~ John Templeton

"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he is wrong." ~ Bernard Baruch

"A market is the combined behavior of thousands of people responding to information, misinformation and whim." ~ Kenneth Chang