Market Update

The Euro itself is flattening out which was the initial catalyst for the loss of intraday downside momentum...

Here you can see the pair has flattened out and really is no longer the driver of intraday trade.

If you read the last post, then you can probably guess what the driver is right now, I'll give you a hint...

It's the first level of support/resistance for the day, yesterday's close, as mentioned in the last post, it was very likely that price would move above the area and not only that, but likely back and forth a few times.

This is the other chart traders are watching, the 5 min 50-bar ma , so this break above was as predictable as the break above first resistance.

As far as the signals go... There's a theme...

Th EUR/USd is still going to be the pivotal asset until it is settled which, well you know, it's such a common price pattern, there's a lot of room for manipulation.

Earlier I talked about the change in momentum that led to the late day upside above yesterday's close, that was almost completely EUR/USD initiated. There was some VERY short term accumulation on intrday 1-2 min charts, but not in all of the averages, once they made it above the resistance area momentum from retail took over.

The point being, the accumulation areas intraday before the reversal are so small, they were meant for the upside intraday move, they aren't big enough for anything else.

Volatility should continue, but it feels like the back has been broken, we'll have a better idea once we see the closing stats and charts as well as signals.

If you really want to see what's going on and how it's progressing, just keep your eye on the EUR/USD.

As far as the longer term 3C charts today alone, there was some significant damage done.