Gold Update - 12/27/09

Last Tuesday GLD made a final move down to 105.31 which is a .764 retracement of the last leg up into the December high. That low completed a zigzag formation which may be wave A of wave 4 from the December high. Since wave 2 that bottomed in July was a zigzag, the rule of alternation says wave 4 will be something other then a zigzag. The current upmove should continue at least until the end of this week. It needs to get above the 12/16 high to confirm that wave A of wave 4 is complete.