The dollar was dropping & equities were rising and gold received a smackdown
that took out the presumed daily cycle low (DCL) on 12/07.
To start off I want to look at the silver chart.
Silver tends to lead gold and we see that silver had a fakeout DCL a day earlier than gold on 12/06. Silver began to drift higher supporting the notion a daily cycle low was left behind on 12/06. Then on 12/13 silver had a panic day down which broke below the 12/06 low. That was telling us that something foul was afoot.
At this point it appeared that silver printed either an extended DCL or possibly a failed daily cycle. Because gold on 12/13 did not breach its 12/07 low I thought that silver had an extended low. Since gold held above its 12/07 low I remained in observation.
It turns out that I was half right because gold soon followed.
As stated gold printed a fakeout DCL on 12/7.
On 12/13 when silver breached its 12/06 low, gold appeared to print a bullish reversal. I gave more weighting to gold than silver, since they were so deep in the timing band. In retrospect I should have articulated what was happening in silver.
As I view that silver printed an extended daily cycle, so too do I think that gold has printed one as well.
The other note of significance for gold is that it also broke below the previous daily cycle low.
A failed daily cycle occurs as the cycle seeks out is intermediate cycle low.
Recall that we believed that the cycle that began on 11/06 was not only a new daily cycle, but a new intermediate cycle as well. Since a new intermediate cycle cannot begin with a failed daily cycle, we must conclude that besides an extended daily cycle, but this also extended the intermediate cycle as well.
We can see here how this has extended gold’s weekly cycle.
This is either week 21 or week 31 for the weekly cycle.
I am not comfortable with a 21 week label because that would mean we need to recognize week 10 as an extremely early intermediate cycle low.
I not not comfortable with a 31 one week label as well, because that gives the weekly cycle an extreme in the other direction.
Either interpretation gives us the same result, we are now expecting a new intermediate cycle to begin when the current daily cycle prints a daily cycle low.
So I am looking for gold to print a daily cycle low in the next day or two.
A failure to do so may mean that the Grinch has stolen our Christmas …
Cycle Trading 
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