tokyo stock market ripped higher after the election into a buying climax (BC) on the 10 NOV.
after that a sharp automatic reaction (AR) set up the trading range.
from that low on the 10th NOV market rally to upthrust though the BC key level at 25865
Now price is below that level and retesing the underside of resistance.
Possible that a move down into 24800...
EUR/AUD could be primed for a breakout to the upside OR a False break before a finale move down below support 1.6 to form a spring.
I tend to favour the latter optoin but the long side for a breakout is tempting - tight stops though.
If you belive -ve rates are a thing then this trade is not for you. If rates have hit all-time lows then this Wyckoff topping pattern on the 10 year T-note weekly chart makes fundamental sense. Technically it has a lot of work to do to the downside to confirm. Typically Wyckoff tops with Upthrust after distribution (UTAD) resolve swiftly to the downside. Noting...
The downtrend that has been in place since the March 20 high may have concluded, at least temporarily.
the market has moved sideways in a trading range since 31 June
The market is potentially in a back-up move.
Needs to hold > 8.639
A bullish hikkake pattern formed in both DJIA and S&P 500 on the 9th of June. the Level in the DJIA that the pattern formed is significant resistance turned support opening the door for fresh new all-time highs.
I placed my stop below the low of the false break and place a stop order to enter at the opening price on the 10th. This order was filled overnight.
On the intra-day Charts, I have recognized a potential Wyckoff Spring set up that may serve as a short term continuation. This set has formed at the lower boundary of a much larger Wyckoff base that could be forming on the daily/ weekly.
On the Weekly chart of the USDOLLAR index, I have plotted the components of a Wyckoff Distribution pattern.
IF the analysis is correct, then the US Dollar is about to enter a mark-down phase that should last many months and pull it down to at least the 72.00 level (1.618 Fib extension).