March 1, 2021

Market Update 2/28 – Weekly Reversals!

AUDUSD followed through on its daily reversal last week and ended up with a weekly volume reversal. The only other weekly volume reversal occurred at the January 2004 high. Price is bouncing from the 50 day average in early week trading. Proposed resistance is .7887, which is the 61.8% retrace of the decline and the center line of the Schiff fork from the March low (see below chart). The next downside level of interest is the lower parallel. That is currently near .7500.
February 26, 2021

Market Update 2/25 – Reversal Edition

EURUSD spiked into and reversed from the noted 1.2220. My view is that a 3 wave rally is complete from the February low and that either a 3 or 5 wave decline will draw price beneath the February low in order to complete the larger correction from the January high. Short term channel support for a bounce is about 1.2080.
February 22, 2021

Market Update: February 21

Crude made a weekly key reversal last week at a defined level (underside of the trendline off of the 2016 and 2018 lows). This is also the level that provided resistance in 2015 before the plunge into the early 2016 low. The trend in the inflation trade (basically USD down) is strong but crude could come off from the current level.
February 10, 2021

Market Update 2/9 – Watch this Bitcoin Level!

If I look at Bitcoin as nothing more than a liquid asset and apply a channel to price history then 53k (give or take) is a level to pay attention to. The level is defined by the 75 line of the channel from the January 2015 low. As an aside, the Bitcoin bottom then was 1/15/2014…one day before the SNB let the floor go on EURCHF. I bought BTCUSD that day but then sold in May 2017. Worst exit ever? The fact that I think about that now is instructive from a timing standpoint. Anyway, the 25 line was support (highlighted) from May to October last year. As per median line symmetry, the 75 line is expected resistance…which is 53,000.
January 21, 2021

Market Update: January 20

The short term median line continues to act as resistance and the 25 line continues to act as support in DXY. If price fails to hold here then the 61.8% retrace at 89.87 is possible support. The upper parallel from the Schiff fork off of the March high was resistance last week. A break above would be significant. Until then, the USD bounce is just that…a bounce.
January 12, 2021

Market Update: January 11

DXY has reached a possible pausing level. The level in question is defined by the 200 period average on the 4 hour chart and the median line from the structure that originates at the 12/17 low. If price does pull back, then I’ll zoom in to identify possible support. If price zooms through this level then the top side of the median line becomes proposed support.
January 5, 2021

Market Update: 1/4/2021 – The Most Important Update of the Year?

Today’s USDOLLAR low…11635. Price reversed sharply higher after low print. UUP, the USD ETF, made a high volume reversal today. The only other volume reversal on the first day of the year was in 2017, which was a high. This is only the 4th bullish reversal since inception of the ETF. The previous 3 worked. Those charts are below.
December 30, 2020

Market Update: December 28

GBPUSD continues to oscillate around the critical 1.3500. A gap higher on perceived positive Brexit news was followed by weakness throughout the day…a classic ‘sell the news’ dynamic. 1.3500/25 remains proposed resistance. The top of this zone is a high volume level. Near term focus remains towards 1.3100ish. The level is defined by trendlines and is just under the 12/11 low.
December 23, 2020

Market Update: December 22

NZDJPY filled the previously uncovered close from May 2019 early this Month and is threatening to break down from a 4 week topping pattern now. The 200 week average has been resistance for years and is proving itself again at the current juncture. Near term focus is on former resistance at 72.00 with a much deeper drop (69.00ish) from the current level possible given the specter of 5 waves up from the March low.