Coming Undone

MerkelAnd, just like that, the ability of The Powers That Be to control the markets is once again called into question.

Classic Rock fans might wish to enjoy a little Guess Who whilst reading this morning’s post and picturing Angela Merkel’s expression upon seeing the markets awash in red this weekend.

With Greece seemingly irretrievably broken, the euro took a huge dump over the weekend.  The SNB swooped in and propped it up, less the carnage be worse than it already was.  The daily chart looks fairly benign…

2015-06-29-EURUSD daily 0616…but, the hourly chart shows just how dramatic Sunday’s plunge (and, the subsequent prop job) was.  Still — only a gap close, and nothing more.  And, there’s plenty more downside potential to our 1.07 target.

2015-06-29-EURUSD 60 0616Friday saw SPX reach the SMA100 as we anticipated [Friday’s post]:

2015-06-29-SPX daily 0617And, today should see our next downside targets come into play, especially since USDJPY and CL have both clearly broken trend.  USDJPY has broken below the red channel midline…2015-06-29-USDJPY daily 0615…and, CL has officially dumped the purple channel and is shacking up with the white channel we proposed on June 19.  From Time to Pivot:

However, I believe the CL’s purple channel is about to fail.  I expect the entire advance to pivot to the less aggressive slope illustrated by the rising white channel in the chart below. If so, the next stop should be a tag of the white midline (red dot.)

2015-06-29-CL daily 0615Maybe it’s just us.  But, doesn’t it feel like “The Powers that Be” have inched a step or two closer to “The Powers That Were?”

Not to worry, today’s move — and the subsequent drops we’ll see in the coming week — are all in keeping with our analog from this past March [see: A New Analog Mar 27, 2015].  We’ll explain.

continued for members…


Sorry, this content is for members only.

Click here to get access.


Already a member? Login below

Remember me (for 2 weeks)

Forgot Password