Posted Jul 9, 2013 by Martin Armstrong
Most of the forecasts now target gold in the 1050 range. This generally means that we could overshoot and crack $1,000 shifting the sentiment decisively negative. This will be POSITIVE long term for just as the talking heads disbelieved the rise in the Dow even as it made new highs laughing how this time they will not get suckered into buying the top, the same is necessary for gold. If we crack $1,000, the majority will trow in the towel and fight every rally thereafter as a selling opportunity. Bull market unfold when the MAJORITY are bearish, not bullish. This is HOW markets move. The majority become the fuel that ignites the engine causing it to move in the opposite direction. We reach the Phase Transition when the majority suddenly see a bull market, flip, and then expect it will never end. That produces the doubling effect and sets the stage for the crash and burn.
Gold has a daily Bullish Reversal at 1302 on the minor level. That means a rally has to exceed that level on a closing basis to stabilize short-term.