SPY made a volume reversal last week. The red and blue bars on the chart indicate volume reversals at at least 5 year highs/lows. The signal is rare. Proposed resistance levels for ES and NQ futures (see next 2 charts) are about 4500 and 15460.
GBPJPY did indeed roll over from the 50 day average and price is testing the well-defined trendline from the March 2020 low. A massive head and shoulders pattern is evident and the target on a break would be near 140. Watch for resistance near 151.80 (see 4 hour chart below).
The USDOLLAR pullback bottomed at 11911…just above 11900. Is this a massive breakout? It is until it isn’t (then it would be a failed breakout). Risk is higher until noted otherwise with focus on 12129/60.
Gold is nearing the upper end of the cited range for resistance. The level is defined by support/resistance since April and the 200 period average on the 4 hour chart. I’m on reversal watch in gold.
Right on cue! USDOLLAR reversed lower from parallel resistance (again) today. I’m not sure how important the high is but short term focus is lower for now. The first level to pay attention to will be 11900.
USDCAD has responded to noted resistance (VWAP and the trendline), so focus is lower. A downside level of interest is the 61.8% retrace of the rally from the June low at 1.2313. That level intersects the trendline from late January, which was support in mid-July. In other words, the line is well-defined.
The silver crash bounced from a median line today. While the action may feel like capitulation, I’m watching for resistance from the line that crosses lows in June and July (red line). That line is about 24.20. Very near term, price could bounce near 23.05 (see below). The 61.8% retrace of the rally from March 2020 is 18.71. Keep that level in mind for major support if reached.
USDTRY has reached the bottom of the proposed resistance zone allow for one more push to test the 61.8% retrace of the decline from the June high. That level is 8.6044. The 50 day average is just below that level. Don’t forget about the contrarian implications from The Economist cover!
he 25 and 75 lines nailed BOTH the high and low today for USDJPY. I’m willing to buy into the center line near 109.15 given the daily volume reversal today (see futures chart below). Near term upside focus is the upper channel line near 110.00.