We've used the Euro ETF FXE to predict the next day's movement, for whatever reason divergences in FXE, no matter what happens overnight, seem to play out the next day. As a reminder a higher Euro almost always means a higher market, there are numerous positives in FXE on the timeframes that are key right now (mostly the shorter term) especially for near term trade.
As far as leading indicators, there's some deterioration here and there, but for the most part they are not only holding up intraday, but still have large divergences that are along the lines of a pretty serious move up.
Also the market averages which have seen a pretty tight 3C correlation today (AAPL 3/5 min charts were an example of a relationship that wasn't tight as they were leading strongly) with the intraday trade are at this time seeing positive divergences in the 1 min area.
Commodities ar not only holding up better relative to the SPX intraday since 2 pm today, but also on a longer basis with this large relative positive divergence.
FCT which has had decent predictive value through divergences is holding up and positive vs the SPX intraday.
It went negative at last week's highs, but has moved to a positive stance since.
Yields were negative at the first and second reaction high in the SPX, but they are positively divergent at this area.
The $AUD has a strong intraday positive divergence vs the SPX
And also longer term at this area as well.
Intraday the Euro is showing better relative strength.
Also on a longer term (bounce/rally) basis it is in a much more positive position relative to the SPX.
HY credit which I mentioned earlier as having its first positive divergence, is still positive vs the SPX.
HYG intraday is still positive, but has moved down with the SPX
Longer term it remains in a positive position as does Junk Credit.
No comments:
Post a Comment