Charts I’m Watching: Nov 10, 2014

Should be a low-volume day, today.  USDJPY is resetting, with no knock-on effect on ES.

2014-11-10-USDJPY 60 0600

While, the Nikkei has completed a descending triangle — normally a bullish setup pattern.

2014-11-10-NDX 60 0600It’ll be telling to see if it acts as such here, as NKD is technically still reacting to the yellow .886 Fib.  NKD is one of the most heavily manipulated indices (I know, it’s redundant) around.  So, any kind of drop here would offer some hints as to the script for the markets going forward.

2014-11-10-NDX weekly 0600One development worth watching: the US dollar.  DX reacted at a smaller scale 1.618 Fib extension.

2014-11-10-DX daily 0600

But, it didn’t quite reach the much larger scale .886.  So, another surge isn’t off the table.  And, such surges have been bullish for stocks lately.  To further complicate matters, DX popped up through the falling red dashed trend line connecting the ’04, ’09 and ’10 tops — but not the rising purple TL connecting the ’11 and ’12 tops.

2014-11-10-DX daily big 0600I’ll be watching DX and NKD especially closely today.




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