The indicators in the chart below take a long time to move. It’s a bit like steering an oil tanker – inputs on the bridge take a long time to have their full effect. This particular ship is moving in a different direction now…

New rules apply, now that we’ve turned…

I’d like to see a $50 pullback here, creating a bull flag of some sort. That would give us the ideal launchpad for the next assault…

It goes without saying that if price action drops below the ‘bowl’ my scenario would be completely different. I’m pretty confident that won’t happen now though. Looking at gold globally, this is very much a bull market. Gold is reflecting the terrible state of global financial systems. Watch the Gold/Silver ratio very carefully as well. I think silver is likely to massively out-perform gold in the next leg up.