Tuesday, November 15, 2011

Technical Levels

 Some technical levels are coming in to play as the DIA hits the bottom of its short term linear regression channel it has bounced off that level, it filled the upside gap, the downside gap in green still will offer temporary support.

 The IWM hit the same channel bottom and bounced off that, it is also at the bottom of the gap support and has broken through and seen a modest bounce from that level.

 QQQ just seems to following the broader market.

 The SPY is also near last ditch gap support.

The more important technical levels seem to be in FX-EUR/USD

 $1.35 is the level the GS is said to have a stop, which would generally mean that they are betting against their own customers and buying there as their customers who received the trade are stopping out. We don't know for sure, but it is seemingly GSs game to bet against their own clients.


 On an hourly chart the Euro is close to support as well near the $1.35 level, that also being  whole number will attract stops and limit orders as a pure function of human gravitation toward whole numbers.

 The longer term daily shows 5 points of contact here and what appears to be the Euro heading down, which is what would be expected from a pattern like this.

This is a close up of the chart above, at the last point of contact, a bearish descending triangle top, which broke resistance and failed on a head fake in the red box and has since turned down. The longer term technical picture for the Euro does not look good.

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