Chart Patterns and You

ORIGINAL POST:  9:15 AM Last night, the dollar tagged the .786 Fib retracement of its decline from Apr 4.  It subsequently sold off almost to the .618 but, so far, is hanging in a rising wedge. The EURUSD re-tested the .500 Fib of its rise from Apr 3, and snapped back into its falling wedge … continue reading →

The Storm Before the Calm

I’ve been quite bearish since going short on April 11 at 1597 [Big Picture: 11:30 update.]  Yesterday, though, SPX reached our initial downside target of 1540 and, as expected, paused. As we’ve discussed, this was an important points for bulls to take a stand.  It was also the ideal spot from which to launch the … continue reading →

Charts I’m Watching: Apr 16, 2013

We’re set to get a nice bounce here at the bottom of the purple channel — as revised in last night’s last post. Based on where the futures are pointing, I’m not sure whether it will have legs or not.  But, I’m inclined to play along on the upside, but with relatively tight stops in … continue reading →

Update on Gold: April 15, 2013

Gold continued to melt down today, shedding another $126 and continuing the plunge that started on Friday with the critical loss of the LT channel we discussed last week, the horizontal support at 1520-1535, and the psychologically important 1500 level. Gold had a nice bounce from 1539 to 1590 after reaching the bottom of the … continue reading →

The Big Picture: Apr 11, 2013

The chart of the day: We closed our longs (from 1539) yesterday, but are still a few points south of the market’s upside potential.  While yesterday’s 1589.07 might end up being the top, I rather suspect we’ll move just a little higher. Recall that we anticipated being in this situation a week ago [Charts I’m … continue reading →

USDJPY Update: Apr 8, 2013

The largest channels are all pretty loose fits, with plenty of incursions that make forecasting with them iffy at best. But, the smaller channels and Harmonic Patterns have been pretty effective.  Even though USDJPY has been running like a 燃える尾を持つ猫, there is growing risk of a downturn as it approaches 100. Consider the new channel … continue reading →

Charts I’m Watching: Mar 21, 2013

ORIGINAL POST:  9:25 AM The EURUSD is still trying to change trajectories (purple channel to red), but hasn’t been able to break out yet. The dollar is similarly facing a change in direction if the red channel can hold. Judging from the futures, SPX is set to react off the neckline and TL we’ve been … continue reading →