Fascinating interplay between the yen, the euro and the dollar today. Biggest problem for bulls continues to be the broken rising white channel.
Look for any more downside to be relegated as much as possible to the after-hours to offset the likely overnight decline in CL, which is ramping like crazy to try and stop SPX’s plunge. There’s a nice backtest available at the close where the red midline crosses the white channel bottom at 119.80.
They had to run CL up through two channel tops — one of them from Jun 2014! Same thing happened on Mar 5, and they had to ramp USDJPY back above the .618 at 120.11 to cover CL’s retreat.
SPX tagged our downside target [see: Mar 20 Update] of 2089 early this morning. A meager bounce saw it slide through support at the SMA50 to within a point of our final target of the day: 2066-2068.The EURUSD is lending a hand as best it can, but badly needs a breather.
Breaking the TL from Mar 12 definitely did some damage. What does it do to our forecast?
continued for members…
Sorry, this content is for members only.
Already a member? Login below…