There’s a tussle going on in CL at the moment — whether or not to respect the .618 retracement of the rise from the March lows. This is the next major support following the breakdown of the rising white channel.
How it plays out will have significant impact on stocks over the next week. Needless to say, it needs to go much lower if yen bashing is going to accelerate. If the failure of yesterday’s falling wedge breakout attempt is any indication, it will — with 44.71 and 42.41 the only support standing between it and new lows.But, the most important chart remains the USDJPY which — as forecast — is now back below the red channel midline. The 4 sessions it spent above the red midline are a good indicator of just how difficult it is to manipulate every zig and zag of the “markets.” Fortunately, it all fits in nicely with our current analog, the last few charts of which will be posted below.
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