Charts I’m Watching: Apr 21, 2014

I hope everyone had a happy Easter holiday.  We’ve had a relatively quiet Sunday and early Monday in the markets — with the futures up only slightly despite a strong rally in the USDJPY.

2014-04-21-ES 60 0620

Could be that investors don’t really see the currency pair going anywhere — as the Nikkei’s price action doesn’t support it.

2014-04-21-NKD 60 0620 2014-04-21-USDJPY 60 0620We have leading economic indicators coming out at 10AM, and today’s POMO purchases are scheduled at $3.25-4.0 billion.  Lots of earnings are also due out this week — 150 of the S&P 500.

Last Wednesday and Thursday had all the hallmarks of a breakout, but on very weak holiday style volume.  In addition, VIX fell to only the .886 of its latest rally and 10-year notes rose only to well-defined resistance.

2014-04-21-TNX daily 0635

In other words, the breakout wasn’t as believable as it could have been.  Trade safe.


Charts I’m Watching: Apr 21, 2014 — 2 Comments

  1. I spotted a bearish crab pattern (D=1813) on the 60min SPX, which also fits in well with the ending diagonal on the daily chart…