GG was short at the base of the retracement zone we talked about last night in reference to ABX. I switched from ABX to GG because ABX was halted pending news and gapped much lower when it finally did open. Notwithstanding more bad news, gold in general should form a short-term bottom around these levels and we'll be watching for another long entry to set up.
The 60 minute chart of the SPY above illustrates support/resistance and congestion zones. It was clear from the lack of momentum on today's rally that resistance at $104.00 would hold. Just wait for a failure. If price holds within 2 upper blue lines, it could form an inverse H&S, and possibly break out of $104 on next test, but I'd like to see a gap fill beforehand.On the 5 minute chart below, I missed the C&H on the way up, but I was ready to short the head fake at $104.00. Take a partial at the base of the C&H and exit balance at low end of congestion zone (green lines).
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