What we are doing is following a group of trades that we identified based on their point and figure charts quite a few months ago. The euro is on a small hinge with a count of 5 along the 136 line. While the major trend is still down with the widening zone of support along the 136 line a rally is possible.
I have added the chart of the s&p financial sector as we have now an enormous area of distribution. In the middle of its trading range there is not much to do but we have identified that it bears watching.
On the daily, we have made a lower low and are rallying weakly with decreased daily ranges and diminishing volume. The moment to pull the trigger may well be approaching.
The Pound looks quite glum and now is weaker than the Euro. It did get down to the counts discussed last week and has accomplished the 11 predicted most conservatively across the 166 line and the 3 across 157. We must now watch for further indications.
Bonds have held in the lower half of their 115-123 range, a sign of weakness according to Mr. Wyckoff and more than amply verified in my experience.
Yields have stayed stuck up against resistance. Again a sign they are going to rise.
The Treasury index is back at is 7 month support for the umpteenth time. Should it give way it will be like a dam bursting.
Finally our friend the SPY moved up from the hinge and is close to accomplishing its count of 5 across the 107 line. This too is having a small rally in a downward trend.
What we are doing is following a group of trades that we identified based on their point and figure charts quite a few months ago. The euro is on a small hinge with a count of 5 along the 136 line. While the major trend is still down with the widening zone of support along the 136 line a rally is possible.
I have added the chart of the s&p financial sector as we have now an enormous area of distribution. In the middle of its trading range there is not much to do but we have identified that it bears watching.
On the daily, we have made a lower low and are rallying weakly with decreased daily ranges and diminishing volume. The moment to pull the trigger may well be approaching.
The Pound looks quite glum and now is weaker than the Euro. It did get down to the counts discussed last week and has accomplished the 11 predicted most conservatively across the 166 line and the 3 across 157. We must now watch for further indications.
Bonds have held in the lower half of their 115-123 range, a sign of weakness according to Mr. Wyckoff and more than amply verified in my experience.
Yields have stayed stuck up against resistance. Again a sign they are going to rise.
The Treasury index is back at is 7 month support for the umpteenth time. Should it give way it will be like a dam bursting.
Finally our friend the SPY moved up from the hinge and is close to accomplishing its count of 5 across the 107 line. This too is having a small rally in a downward trend.
