Yesterday on Twitter I mentioned if we breakdown from 12350 I expect this to drop all the way to the neckline in rapid fashion. This morning it appears that is happening and this sell off seems to be different from the view that this is the first time since I received a sell signal on the TSX  (indicated by red arrow). We’ve also closed below this line on the 60 min chart and the selling actually seems to be sticking despite the uptick in gold and silver on the futures market (two markets I’m also bearish on).

I also wanted to point out this is all coming on the heels of the bull trap on Monday when it appeared this market was going to break to the upside and the fact that it’s essentially failed immediately tells us there is a psychological shift happening.

No plans on covering this position at this time.

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