A few days ago I mentioned that in spite of the declines the market remained in a “bullish” bias. That assessment was made due to the fact that price action had not closed below the lows from last July (ending a series of higher highs and higher lows). That came to an end yesterday as the market broke below the previous lows only to rally and close on the July lows. Mentioned a week ago that the run had encountered serious “technical” damage when prices broke though the support from $7.40 and was confirmed last week and on Monday when prices broke down below $6.40. It has been a sell the rally all month (Oct) and will continue to be so until the over-sold bias gets corrected. That correction may be very ugly when it occurs for the bears.
Major Support: $5.38-$5.35 Minor Support $5.40-$5.45 Major Resistance:$6.314, $6.74, $7.18, $7.532, $7.71-7.75, 8.021, $9.05-$9.12,$9.35,
