Gold, Carry and ES Futures

For the second time in nearly 24 hours gold futures have lost the $1400 level they had taken out, tonight gold slipped back below $1400, but not before making a new high for the week.

 This is the 1 min intraday chart of gold futures with a positive divergence sending gold higher and a negative sending it lower and under $1400 for now.

This 5 min chart of gold futures shows gold gapping up above $1400 on the start of futures trade for the week last night and quickly losing the $1400 level, the overall divergence is leading negative and tonight's attempt thus far hasn't stuck either.


This may be due in part to some $USD strength and JPY weakness, it's kind of "Which came first, the chicken or the egg?" as far as the JPY, but all happened at the same time.

 USDX 1 min positive divergence at the lows sending the $USD higher corresponds with golds move off the highs.

 The Yen's 1 min chart move lower also corresponds with the highs in Gold, it may be the USD/JPY carry trade moved and as a result dollar denominated assets moved like gold (Crude didn't have a distinct move).

The ES 5 min chart is VERY young here, but this kind of 5 min flat price range with a leading 3C signal is the kind of work the averages will have to do to get back on track and headed toward carrying on a bounce.