Technical Picture - Resistance

Technical levels of interest today were the high of Thursday's WRB at $117 and the death cross of the 20 EMA and 50 SMA around $117.40. After testing and finally taking out $117.00, price rallied to the $117.40 and abruptly reversed. It formed a narrow range consolidation at the trendline and $117 level, setting up the perfect short.

I commented about this just minutes before it broke in the previous post.

The futures trade continued lower in after hours testing this morning's support. Support/resistance levels are mapped out below. The red line represents the reaction highs from Thursday's attempted recovery following the meltdown.

As I write this post, $115 ES futures is holding as resistance. That could change overnight. Futures generally pick up momentum after midnight.


Gold gapped through last December's bearish island reversal on high volume. Now the island/gap area has to hold as support, otherwise we may have a double top pattern.

I saw profit taking in large cap gold stocks such as GG, AEM, NEM... in the final minutes of the session.

$USD continues to trend higher.

Oversold bias has retraced 50% of last leg down.