Technical Picture - Gold Range Expansion

The broad market opened higher and immediately gave up ground. Much of the day was spent in consolidation mode. There was a noticeably divergence between the S&P (new high late in the day) and the NASDAQ (no new high late in the day). The VIX worked lower continuing to confirm the current trend. However, keep in mind that the market can and often does turn on a dime.

Gold continued its range expansion move following the breakout from the coil mentioned on Friday. The coil turned out to be the right shoulder of a small inverse H&S visible on the daily chart. However, low risk entries in individual gold stocks were tough to find today. ABX had an okay setup above the morning range high, but the risk to reward ratio based on the 62% extension of the 30min OR (a common target for me) was not favorably.