USDOLLAR reversed higher today after undercutting the September low. Importantly, price reversed at the median line…just as it did in September. Divergence with RSI attends the low, as it often does at important turns. Today was also a bullish engulfing pattern. This occurs when price opens below the prior close and closes above the prior open.
Right on cue. Bitcoin plunged last week before bouncing back. This is the 2nd weekly volume reversal in the last 3 years. The other one was in June 2019. Watch for resistance from daily reversal resistance at 18732
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There is a massive parallel in the Dow at about 30900 that is worth noting. The line crosses the 2007 and 2018 highs and high from early this year. The line equidistant from the median line (concept symmetry) was support in March. These parallels are based on the line that connects the 1932 and 1982 lows (see monthly chart below).
Gold tagged proposed resistance on Friday and dumped today…beautiful. Price is quickly approaching the long held support near 1780. This level is an important parallel and the lower channel line from the bearish channel off of the August high. I’ll be paying close attention to 1780 for reversal evidence.
S&P 500 futures continues to stairstep lower. I am looking lower. Price ideally stays under 3583. Initial focus is 3456.75 with 3506.50 as a possible bounce spot. On the sentiment front, hedge funds are all in and short interest is at an all-time low (see charts below).
Assets prices were down in early U.S. trading as the USD rallied but everything reversed course when the magical U.S. session got underway (stocks up, metals up, USD down, etc.). I still like gold lower but a bit more strength may be in order to test resistance near 1876.
Traders look for candlestick patterns in forex charts to try and identify possible price movements and predict the direction.
Neither SPX or the Nasdaq have broken above their reversal day highs from last week (11/9). What’s more, SPX has reversed yet again from the line that connects highs since 2018. Don’t forget that this line crosses major pivots for the last 88 years (monthly chart is below). U.S. equity valuation is at a peak as well (see 2 charts down).