Charts I’m Watching: Jan 9, 2015

Yesterday’s rally went beyond our target for SPX, topping out at 2064 before closing at 2059.  From yesterday’s pre-opening post:

This morning’s surge looks likely to reach the SMA20 and/or SMA50 (in yellow) with the next major upside resistance the purple channel midline where it intersects the purple .618 and SMA10 at 2057ish.

2015-01-09-SPX daily 0600The close-up:

2015-01-09-SPX 15 0600As expected, USDJPY led the way.  The early morning sell-off was quickly recovered and a modest rally was maintained throughout the trading session — just enough to keep the algo reaction going.

I suspect the sell-off in the last hour has been all about legitimizing the rising purple channel within the larger white channel.  But, the red channel is a factor to contend with until USDJPY breaks out — if it’s going to.

But, it came undone overnight, briefly dipping below the rising white channel bound and giving additional credence to the falling red channel.  The key white .618 at 120.11 remains unscathed.

2015-01-09-USDJPY 30 0600Futures followed along most of the night, off 7-8 just prior to the employment report, which provided a quick boost back to green — but, is since fading.

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