This is a followup to a previous opinion on ABX. Looking at gold we can see that it has bounced nicely off the 2.6 extension level, which may be an indication that the correction is over. If the GLD closes above the 1.6 level, this would confirm that new bull market has begun. However, if we fail to reach this level relatively soon, or bounce off it, gold may be heading all the way down to the 4.2 extension level, which would be at least a 50% cut in the current price.