“If the problem has a solution, worrying is pointless, in the end the problem will be solved. If the problem has no solution, there is no reason to worry, because it can’t be solved.” – Zen Proverb
Moves are in play following FOMC and ECB. As we like to say, it’s all about follow-through now and seeing if we can get some traction. So far, markets have reacted in a fairly technical manner and as students of the markets would expect given current price locations and seasonality. The next big question is if the post FOMC 24/48h reversal sticks on the equity side. The only thing that matters on the indices today > weekly highs to the upside and weekly lows to the downside.
In terms of the other charts in focus, as we have been discussing that the key pivotal levels for momo and flows are the 1250 mark on GC, the 1.18 mark on Euro and the 112 mark on Yen. Look at these levels to serve as the ‘switch’ to turn on the next sustained move… they will not only be important for the rest of the month but also as we move into 2018.
As always, there is no substitute for real-time/live action; if you are interested in attending a daily morning call into NY with a more detailed live discussion on all the charts and ideas we highlight/review in the outlook video and here on the blog, you should check out our Daily Webinar Group.