This is a biggie... Remember, the dollar goes up, most risk assets go down. The FXE Euro goes down and the dollar index goes up. UUP represents the dollar index, FXE, the Euro. There have been some amazing moves today.
Here the dollar breaks intraday support, that should have lifted the market slightly, perhaps they are going for the area in the DOW/QQQ I mentioned, but the 1 min UUP positive divergence is STRONG.
More impressive is the 5 min pos. div.
And a 10 min positive!
This is where it gets exceptional, a 1 day positive divergence in the 15 min chart, it takes a LOT of accumulation to do that.
But t doesn't stop there, it''s now reached the 30 min chart in a single day on a break of support. Almost certainly a head fake.
FXE should show the inverse of UUP for confirmation, I mentioned it earlier. The 1 min is negative.
As is the 5 min.
And the 15 min, again in one day.
This is a major event in currencies and has profound implications for the market. I would like to see a head fake lower in UUP sending the DIA/QQQ to breakout highs, that would almost certainly be a false breakout and time to throw the shorts on with more confidence.
No comments:
Post a Comment