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Dow Divergence in Gold

Richard Russell of the Dow Theory Letters writes "From a Dow Theory standpoint, the markets continue to face a major non-confirmation in the Averages. The Transports have risen to new record highs while the Dow has failed month after month to confirm. Thus, from a Dow Theory standpoint, this is a dangerous market. It's particularly dangerous because of this truly spectacular divergence and non-confirmation in the Averages."

The above paragraph was taken from an article citing a different crcumstance. But it is relevant to the point we cite below.

The Comex Gold has been making higher tops with the frist top made at $541. But the MCX gold has rotundly failed to breach the top made at 8134. It managed to trade above these levels several times, but it has failed to sustain above these levels. So are we "Undecided market" [I wont use the word dangerous in this case]. Time will tell.

:) Falkor

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