Although my work argues that spot gold prices are warning us to beware of a near-term reaction at just about any time now, our proxy on the equity side, NEM, still has a very "attractive" near- and intermediate-term pattern.  NEW continues to trade in a high-level congestion area roughly between 46 and 48, which my work argues should resolved itself in a pop to the upside that hurdles key near-term resistance plateu at 50.00-50.30.  At this juncture, only a decline that breaks and sustains below 45.20 will begin to compromise the timing to the expected upside breakout.  For the time being, my work argues for upside acceleration sooner, rather than later. 

MJP 12/05/05

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.