- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Tuesday, 20 July 2010

I was expecting an up day today but .....

IBM missed last night and it looks like we'll see a big gap down this morning after support at 1059 ES was broken with confidence overnight. Gaps out of the previous day's range tend to keep running in the direction of the gap, so if ES is below 1056.5 ES at the open, then the gap fill will be a risky play today.

ES hasn't formed anything in the way of a usable channel or pattern since the break down last Friday but I've marked in some support and resistance levels on the chart:


Gold had a bad day yesterday, breaking the lower of my two short term support trendlines and is now approaching a lower trendline of the rising channel from late 2008. It may be that this longstanding channel is about to break downwards, but until it does this looks like an interesting long opportunity:


Another longstanding channel is the CADUSD rising channel from early 2009. CADUSD was alone among the major USD currency pairs in not breaking major support during the big USD move up. Now that USD has broken rising trendline support, I'd be surprised to see CADUSD break down too:

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