Tuesday, July 28, 2009

Technical Picture - Range Bound

The S&P carved out two consecutive hanging men in range bound trade. Until either of the two top blue lines on the SPY chart is broken (box play - see ABX example of box play at bottom of this post), the only way to trade is cautiously selling resistance and buying support.

Oil looks like it may be setting up an ambush.

Gold is in play, with a sharp move lower out of a box play. ABX gapped lower and tried to bounce, but couldn't hold the next blue support line.

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