I think the market is taking a breather, this is all Euro based as it tries to test $1.30 and the market moves with the Euro or against the dollar, so lets start with the Euro.
Here's an intraday triangle or consolidation pattern, this looks like the breather the 1 min charts are showing.
FXE 1 min negative, this is enough to cause the trend to consolidate for a bit.
FXE 2 min also negative.
But the 5 min remains positive, hinting that the Euro/FXE will move higher and still take a shot at the $1.30 level and it will drag equities higher with it, which gives us an opportunity to short some stocks in to price strength.
The DIA shows the same, a 1 min negative as a breather/timeout or consolidation
But the 5 min is still showing the chance for more upside.
The QQQ 1 min shows the same.
And the QQQ 2 min shows more upside likely, so in essence we've had a brief pause in an intraday bounce.
SPY 1 min
SPY 2 mn.
I would still keep an eye on the FXE/Euro trade, but as said before, $1.30 will be defended and there are a lot of contracts there, a break of $1.30 that is sustained will drop the Euro and the market like a rock, so this is the time to be productive and look for candidates that you like and look for tactical entries.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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