Charts I’m Watching: Feb 5, 2014

USDJPY completed a little Bat Pattern…

…but, this was the backtest of a broken channel bottom.  There’s plenty more downside, with the immediate objective the yellow midline.

It might provide a good bounce spot, as it has several times in the past year.  Look for it to line up with an SPX bounce such as the Sep 19 high (1729.86) or the purple channel bottom/yellow .618 combo.

At 1724, the S&P 500 will have dropped 6.8% from its high — a breather not unlike the others of the past 16 months.  If the purple channel should fail, however, things get real ugly real fast.  I think it will — as the USDJPY chart that confirmed Dec 31 as an important top is still very much in play.

The e-minis narrowly escaped one H&S Pattern, but are threatening to form another which targets 1714ish.

 

 

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Charts I’m Watching: Feb 5, 2014 — 1 Comment

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