Paper currencies continue to lose ground as more traders pile into gold and elections across the world continue in force with some surprises. Hong Kong disturbances lead China to call groups ‘terrorist’ in nature and a slew of economic releases face us this week. In short, lots of reasons to find volatile trading backdrops. Be careful and realize that markets are not trending- and most systems are trending systems – move the telescope out wider so you can understand the bigger backdrop.
The e-mini S&P, though off its highs, is holding below 2912 – a key level of support. The mini Nasdaq is above 7667, a lower support of importance. The mini DOW traders have lifted us over 26028 but seems likely to retest once again. Markets are settling into a range once more BUT traders remain very skittish. Watch your edges. Ranges could easily break, accelerate away and then return.
|COMMODITY & CURRENCY WATCH|
Gold is working through technical divergence near 1515 resistance with buyers coming in at each dip below. Currency moves continue at the forefront of the markets for another week and over the coming months. The USD index now holds very familiar channel support near 97.3 to 97.5 remaining resilient to other currency movement. WTI recovered well as the rig counts come in today and is now testing 54 and back into heavy congestion. Holding 52 is now the floor in the near term.
Ranges intraday widen and as cross currents continue, we hold levels between 2881 and 2928. The mini Nasdaq is battling in the range between 7508 to 7767. The mini DOW is battling support near 26028 with resistance sitting near 26289. Continue to be careful here on the edges of your charts as we could accelerate out and continue if traders get too heavy on the edges, in which case, you’ll have to reverse your position. Whipsaw is likely
|OVERALL WIDE ANGLE |
Remains the same. Divergent action still sits below the movement of price on both sides of the trades – long and short – but traders are still looking at deep support edges to bounce – see the weekly charts for this confirmation. Weekly charts are showing flattening momentum and some more downside weakness that that must be confirmed
|METASTOCK SWING SHORT – A NEW ENTRY AT THE FAILED TEST OF 2912 WITH A 10 POINT STOP ENGAGED AT THE SECOND FAILURE OF 2912 ON FRIDAY.|
|TARGETS -2897 HIT, 2889, 2881 ARE NEXT – BIGGER FRAMES STILL SHOW BOUNCE PATTERNS LIKELY SO WE ARE TRADING AROUND THE SWING SHORT MOVING IN AND OUT|
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