R2K, weekly
sp'weekly7
Summary
*Not surprisingly, with sig' daily gains, the weekly 'rainbow' candle has now flipped from blue to green. There is simply nothing bearish here.
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Most notable today - besides the broader upside action... the R2K, which attained a new historic high. Most other indexes look set to follow within the next few weeks.
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Currency swings
Mere minutes after the 4pm equity close... there was real upset in currency land, where the USD flashed lower from the DXY 98s to 94.70.
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Seen on the bigger picture.. there remains threat of a major - if natural, retrace to the breakout zone of DXY 90/87.... before resuming upward to the 120s.
USD, monthly
Monthly candle is starting to get a little spiky, and if we see a monthly close of 99.. or lower.. it would be suggestive of a 2-4 month retrace.
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Looking ahead
Thursday will see the usual jobs data, current acc, phil' fed, and leading indicators.
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Moody bears
No doubt a fair few were heavy short the market into the 2pm announcement today. As I noted at the time, the smaller 5/15min cycles favoured the equity bulls. I had looked for upside as high as 2085/90... but with sustained action in the 2090s... and soon after.. 2100s, any hope of a reversal/broader downside is now OFF the menu.
I myself try to resist trading Fed days - along with some others I know. Such days can be notoriously unstable, and today was a good example where the micro cycles (just prior to 2pm) were warning of a higher chance of upside.. than downside.
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Perhaps.. the following sums up the mood for those who remain short equities... and who don't use trading stops.
Goodnight from London