So far the DXY105 level has been breached as well as the SPX 4,000.
BOTH market are at critical price structures and levels. IN the comming days I will be monitoring very carefully and considering how to allocate capital.
(i.e. Will not be publishing charts)
In both MARKETS ( DXY & SPX ) I expect a retest of these levels. BUT how this retest happens (or it is fails to happen) will be critical for the next few weeks and months.
If DXY 104.50 becomes a tested resistance (which means price come back from underneath and is rejected lower again with a second lower low ).AND/ OR the SPX 4,000 become the tested support (which means price come down from above and is rejected higher with a second high).
MY BIAS will be to look for opportunities to re-enter SPX long positions, I.E. IF these support and resistance levels are established. (while the DXY may temporary correct higher/ SPX may temporary correct lower) My BIAS will be to interpret these as opportunities to go long on the SPX and Short DXY
Of course both of these support an residence level may fail and we could have a significant bounce higher in the DXY and lower in the SPX, and IF these markets DO FAIL (this test) we could be reversing back in DXY long and SPX short , BUT BUT now both markets are at this critical juncture and now is the time to monitor price very carefully.
BOTH market are at critical price structures and levels. IN the comming days I will be monitoring very carefully and considering how to allocate capital.
(i.e. Will not be publishing charts)
In both MARKETS ( DXY & SPX ) I expect a retest of these levels. BUT how this retest happens (or it is fails to happen) will be critical for the next few weeks and months.
If DXY 104.50 becomes a tested resistance (which means price come back from underneath and is rejected lower again with a second lower low ).AND/ OR the SPX 4,000 become the tested support (which means price come down from above and is rejected higher with a second high).
MY BIAS will be to look for opportunities to re-enter SPX long positions, I.E. IF these support and resistance levels are established. (while the DXY may temporary correct higher/ SPX may temporary correct lower) My BIAS will be to interpret these as opportunities to go long on the SPX and Short DXY
Of course both of these support an residence level may fail and we could have a significant bounce higher in the DXY and lower in the SPX, and IF these markets DO FAIL (this test) we could be reversing back in DXY long and SPX short , BUT BUT now both markets are at this critical juncture and now is the time to monitor price very carefully.
Comment:
Comment:
residence not yet, expect some lower to complete the bottom, then correction up with more downside to follow. Last update before a long and early holiday vacation
Comment:
However. IF these support and residence levels are NOT established. Well then I'm still a bear (near/ medium term) on the SPX, and bull on DXY for the near/medium term, anticipating a correction.