Monday, June 27, 2011

S&P (ES) At trendline 6/27

S&P hourly chart is approaching the trendline that was set by the last couple days of action (shown in yellow). We also see we are right at the deep retracement (@1279.75) for our recent down move from the peak wednesday at 1294. Any good formation here and I think it would make for a good selling opportunity, although with such easy resistance found I would not be shocked to see big players push this higher only to see it fall right through the trendline later.

EDIT: Not mentioned in the post or shown in the chart is the fact that the MACD has pulled back to the same height as the previous peak from Friday, while price is a good 5 points lower, not a crazy amount of divergence but there is some.

Russell 2000 (TF) Triangle forming 6/27

The russell 2000 chart has been forming a triangle (highlighted in purple) over the last few trading days. Usually this would mean we are getting ready to make a break one way or another and at this point I'm not exactly sure which way as all equities seemed to have found strong support where it was expected, but at the same time a strong formation like this is sometimes whats needed to get a trend to continue. Also highlighted is the MACD's triangle formation, which only confuses the picture as there are no real clues in it for which way we might be going.

EUR/USD Heading lower 6/27

It's been a little longer than usual for a post, partially because the markets have been kinda slow and I've been kinda busy at work so with no real wonderful opportunities I just decided to say nothing. It looks like we might be getting a chance to sell the euro short here though as we spiked up this morning and now look to bounce off the 50% retracement of the downmove from 1.45. We also have continuation divergence forming with the MACD as it pulls back farther than price relative to its last peak. The lower time frames are showing some candlestick patterns to enter off of, but I'll wait for this hour to finish to see how it looks.