DXY topped RIGHT at the parallel that has been highlighted for weeks. Also, the full extension of the channel from the May 2021 low is on the high. The upper parallel (magenta line) from that channel is now proposed support near 101.20/30 over the next week. 103.90-104.20 is proposed support.
BTCUSD reversed off of the VWAP and the median line today! This is huge and sets a line in the sand for BTCUSD and probably crypto and ‘risk’ in general (see the Nasdaq composite and BTCUSD overlay below). IF a screaming rally is going to unfold then it’s from this level. The former low at 32950 is now resistance. Here’s the thing though…IF BTCUSD breaks below today’s low then we’re in crash territory until the lower parallel near 14000.
USDJPY has broken the trendline from the late March low. I’m bearish. 130.40/50 is now proposed resistance.
DIA (Dow ETF) levels are extremely well-defined. A massive top is completed and the biggest level on this chart is 297.50 (or so). A drop to that level would represent a 20% drop from the all-time high. In the grand scheme of things, that’s fairly normal. Possible trading levels before then include 313.50 (VWAP from the March 2020 low) and 332.70 for resistance (former support). The full view of the structure from the 2020 low is shown below.
January produced some monthly reversals of note. SPY made a 1 bar monthly volume reversal. Notice that reversals also occurred in June/July 2007 (high) and October 2002 (low). There were failed signals however in 1997. Obviously, monthly signals may not be all that timely. These are ‘big picture’ observations. It’s important to understand in light of weekly bullish reversals in indices last week! These charts are shown below the monthly charts in this post.