A question was ask in the comments about the following from last night's Technical Picture. "Gold might be forming a bear flag, but overall it is in the context of a larger trading range (TF). "Flags" which form within TRs are always suspect." The gold sector/index chart ($XAU) below shows that the bear flag formed above the trend line and at approximately the same price level as recent congestion.

Since the index bear flag is in a congestion zone and thus more questionable, the best approach is to find an individual gold stock that is weaker than the index. AEM got my attention. Notice the weakness of the AEM daily chart compared to the index above - bear flag is below trend line. It broke quickly and I had to wait for a pause to enter. Sweet exit at 62% Fib extension.

As the market was firming up, SRS (inverse ETF) had a great setup at the ORL and PDL. I covered at 62% extension of OR and left a lot on the table. However, given the context of this rally (in a big time bear market), we could turn anytime and quickly. Look at that falling wedge on the SRS daily.