from Silver Doctors:
The Federal Reserve chairman recently talked about reducing QE. The bond market was looking a little toppy before he spoke, but now it looks like a huge bear market may be starting. The technical indicators on this chart are showing major sell signals. This type of situation doesn’t happen very often, and if the technical continue to deteriorate, a bond market recovery may not occur unless the Fed actually increases QE. The head & shoulders top formation is signaling a decline is coming, to the lower channel. Note the head & shoulders top pattern. The target is about 130.
An institutional loss of confidence in the world’s largest market appears to be gaining a lot of momentum.
The gold market is certainly washed out, and hopefully ready to move higher. Price bounces from downward parabolic moves (inverse parabolas) tend to be dramatic.
Once gold breaks free from the grip of this powerful inverse parabola, I am projecting a violent move to the $1580 area.
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