“The usual bull market successfully weathers a number of tests until it is considered invulnerable, whereupon it is ripe for a bust.” – George Soros
The relentless bid continues to appear in equities despite more and more cracks starting to show across the charts. In this context, it’s important to leave emotions out of the equation and simply focus on the levels understanding that unless the bigger ranges are broken, we are still stuck in choppy trading until we get the next catalyst.
In terms of the pivotal levels for momo and flows (key bull/bear lines), we would be focusing on:
> ZBs @ 152 / ES @ 2500 / NQ @ 6000 / YM @ 23000 / RTY @ 1500
As we have been discussing, there are a lot of key charts that are starting to break down but remember that if you are looking for a bigger acceleration lower across the board, it is going to be very hard to get a decent move unless Apple decides to join the party.
On the FX side, we’ll have to wait for Draghi as DXY is trying but struggling to make a decisive move.
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