"You pointed out that there was a key day reversal for gold on the 21st. But does the concept of a key day reversal have a meaning in a market such as gold where a few bullion banks led by JPMorgan manipulate the market through huge positions in naked shorts? Unless the CFTC intervenes limiting the size of short positions, standard interpretation of free market dynamics doesn't apply."

David Fuller's view There is nothing magical about key day reversals. However in a trend which is becoming overstretched, participants are often looking for the first sign of a change, in order to take profits. Consequently, the key can alter sentiment or confirm prior concern, which changes the balance in supply versus demand.

I am not so naïve as to believe that markets are not manipulated from time to time, including attempts to create keys or other signals which can affect sentiment. However I would not conclude that gold is manipulated any more than any other market and as volume increases it is harder for any single participant to muscle the market. Most people in the markets, big or small, are just trying to figure out whether they should buy or sell, just like the rest of us.

Meanwhile, gold has experienced a second key day reversal today and this is a short-term warning.