Next week is critical. Precious metals held steady despite the favorable jobs report on Friday. We are now 20-trading days into the first common cycle out of the October 7th lows, and prices should be in the process of forming an interim high. Conventional cycle timing supports prices correcting from here into a tradable low.

Unfortunately, these are not conventional circumstances. A Trump victory could nullify the cycle timing, and gold prices could blast through resistance at $1,310 during a panic. In this scenario, it would not surprise me to see prices shoot to $1,360-$1,370 before a pullback. IF prices set themselves up for this scenario, I may consider placing a buy stop on gold at $1,315 hoping to catch a breakout. I’ll monitor conditions early next week and keep members informed.

We are heading into a potentially volatile week. I’m keeping trading positions small until there is a clearly defined risk/reward setup.

-US DOLLAR WEEKLY- The dollar broke through the upper trendline in October. It is not uncommon for prices to come back and test the breakout zone. We should see a bottom form between 96.50 and 96.00.

-US DOLLAR DAILY- The dollar is dropping into a cycle low, and prices should bottom in the support zone.

-WEEKLY YEN- I didn’t expect gold to bottom until the Yen dropped below the 50-week EMA. During a strong uptrend prices historically drop to the 50-week EMA before forming a cycle low.

-GOLD- Gold is 20-days into the current common cycle and prices should begin dropping into the first low any day. I will be looking for two closes below the 10-day EMA to signal the decline.

-SILVER- Silver should find support beneath the 10-day EMA around $17.80.

-HUI- The HUI has overhead resistance between 235-250 and significant support at the 195 level. There is no clear setup in either direction until we know more prices are in limbo.

-GDX- Prices need consecutive closes above $26.50 to neutralize the bearish head and shoulder topping pattern in the chart.

-GDXJ- Prices are stuck between the 50-day and 10-day EMA’s. Whichever way they breakout will determine the near-term path.

-SLW- Silver Wheaton fell to the lower trendline again and then rallied. A close below it will be a bearish sign for the bellwether stock.

-S&P500 WEEKLY- The S&P500 closed below significant support and the 50-week EMA. The potential for a sharp move lower still exists.

-SPY- The weekly chart shows a significant breakdown in stock prices. However, the daily chart of SPY has reached oversold levels on a temporary basis. For this reason, I took profit on 75% of my shorts. Prices are close to the 200-day MA, and we could see a bounce. However, unfavorable political outcomes could override the short-term oversold level, and prices could sell-off sharply during a panic.

-WTIC- Oil is oversold and nearing the 200-day MA. We could see a bounce to the $46.50 level. Nevertheless, we still have 2-months before the next cycle low is due and prices could drop significantly lower.

Expect multiple updates next week as things unfold.