Charts I’m Watching: Jan 13, 2014

Keeping an eye on the Thai baht, the yen and the euro this morning now that the ES has completed its Bat Pattern and likely its 2d wave.

The USDTHB has broken out…

…while the THBJPY is breaking down.

The yen, strengthening as fear of unrest in Thailand spreads to the markets, seems to be making the move we anticipated — the one that signals a significant equities correction.

One interesting chart that demonstrates the enormous lengths to which market makers are going to frustrate and fleece those seeking to follow the new trend I believe began after the market topped out on Jan 2:

Of the 7 trading days since the Jan 2 plunge, five were a “gap and crap” while one was a “plunge and lunge.”  The latest, #7, has yet to show its stripes — but our prognosis remains bearish.

continued for membersUPDATE:  2:25 PM

So far, so good.  There’s a potential turning point coming at ES 1820 and SPX 1825.






USDJPY might see good Fib and channel support at 102.73-102.82.

UPDATE:  3:07 PM

USDJPY holding at the channel line, but equities taking it to the next lower level.  Poss SPX support at 1813ish.

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