I Was Expecting Up Day, But….. (by Springheel Jack)

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(Please note this was written last night by SJ…….Tim)

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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