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Wednesday, November 17, 2010

BJ

Here is a classic failed breakout, with a bigh gap up followed by the dreaded black candle and a close below the breakout point. The incredibly weak price relative line telegraphed something wrong here. This is my observation, so I don't know how much truth there is to it, but it seems a weak price relative line indicates the big money is selling into any strength, and that sure looks like the case here.

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