Investors flee to GOLD as world markets tumble!

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Derek  6 Aug 2019

Good Morning,

Investors flee to GOLD as world markets tumble. Fear is in full control since Trump and Powell crashed investors' party.

The S&P500 is now nearing our previous support and the 200 day moving average. Notice that FrontRunner is warning that the low has not been reached.

I zoomed out a bit for the Hang Seng to show where we are compared to the past. I also marked the 3 gaps on the chart. First one is a breakaway gap. Second one is a continuation gap. We do not know yet whethet the 3 rd one is also a continuation or exhaustion gap? FrontRunner is warning that it is a continuation gap.

You might be wondering if any shares moved positively in the S&P500? 10 out of 500 did move positively, just to prove that we are busy with a serious correction.

Corrections are always much faster than positive moves that takes time to develop. You can see this on the chart of Wynn Resorts. After the positive trend line was broken, the trend line of the correction is much steaper. Notice the FrontRunner warning marked on the chart. I am 99% sure that divergence will show us the bottom.

JSE Technichal:
The JSE did not escape the World Market tumble and is just following suit.

Investors fled to GOLD while markets are correcting. You remember the pattern I showed of PSG yesterday? Not....have a look again at yesterdays' review. The reverse pattern can be seen on the chart of Gold Fileds. It broke top resistance with a gap.

A correction like this gives big oppertunities, but patience is needed for the turn. I am a strong believer in divergence to show the way and will show it when it happens.

Enjoy your day.
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