Wednesday, August 31, 2011

S&P 500 Hourly Chart

The S&P is not confirming its current highs with a higher RSI. This usually signal an upcoming reversal.

Tuesday, August 30, 2011

NZDUSD Short Setup

The NZDUSD is currently offering an excellent risk reward setup if this is indeed a head and shoulders pattern as I suspect.

S&P 500 Short Term Chart

The recent bounce in the S&P 500 may be ending as it appears to be respecting its descending trendline which connects the lows of April 18th and June 16th. If my wave count is incorrect and price action breaks above the descending trendline, we can expect a sudden move to 1250.

Sunday, August 28, 2011

Short AUDUSD

With the Australian dollar rebounding to the 61.8% retracement of it's impulsive decline from 1.10, a short position near current levels appears warranted. This level is given additional importance it coincides with the uptrend channel support which has now become resistance.

S&P 500 Mid Term Chart

The green line is a 55 period EMA which has shown a tendency to act a significant support and resistance; therefore, the path of least resistance should be lower. 


Saturday, August 27, 2011

Long Term Dollar Index Wave Count

 
Wave 2 Blue in 2008 was set 17 weeks after the dollar bottomed in March of 2008. Next week will be week 17 since Wave 2 Pink set it's low this May. Also the last three weeks have seen closes at the weekly downtrend trendline. As you can see from 2008, once a major trendline is broken, a massive move in the direction opposite of the previous trend takes place. This would confirm my view that we are about to enter Wave 3 Pink to the upside.