Normally wouldn't put this much weight on an Eric "Leading the Witness" King interview, but this is the clearest view I've heard Santa express to date regarding this correction.
Eric King: “This smash that we’ve seen in gold, is it over?”
Sinclair: “On or before the 28th of February is the date that I’ve been living with, and it looks like it’s right. The mining shares, those are the most liquid positions are the shorts. So basically the mining shares today were in shock at the price of gold and didn’t believe it.
What is the best sign here for us is that we didn’t get a Monday smash. Also, the morning takedowns have been less enthusiastic. So you would have to conclude that the morning takedowns are not being done by the major manipulators now. That’s a reversal of a pattern and a reversal of a pattern means a reversal of the (gold) market.
I think any time you’ve taken a hit like this you are going to have to chop your way out and that’s exactly what I think we’ve been doing so far this week. But if the pattern now is reversed, and that will be very obvious next Monday morning, I think gold could shoot right back out of this hole and aggressively to the upside.”
Eric King: “Would that be a V-bottom Jim?”
Sinclair: “This time, yes. With the amount of pressure recently on the downside, and with the reversal of the pattern of what was the hallmark of the interest that created the downside, the answer is yes, a V-bottom is what you would expect.”