It’s been a tough week for me (Stripey’s passing and more) and I hope you can forgive me if I’m going to be brief today. We are near an inflection point which I however wanted to share before I call it a week:
The hourly spoos are testing the 100-hour SMA again and that’s interesting for many reasons. First we have two NLBLs hanging right above. If we breach those we are lined up for an acceleration higher as we are also painting an inverse H&S formation. So this could get really interesting, especially if it happens after hours. So if you’re bullish here wait for 1407 and Bob’s your uncle.
The daily is supporting what I’m seeing on the hourly. A nice snap back near the 25-day SMA (we never made it all the way to 1380, showing how weak the bears continue to be after three years of punishment) and we are now back right below the daily NLBL at 1405.75. How nicely that lines up with those NLBLs and our inflection point on the hourly!
So that’s basically our inflection point – watch the spoos for a breach of about 1406 – that’s your yellow light – 1407 is our green light. Until that happens of course anything’s possible.
We’re getting a lot of very educational Zero sessions lately which is a good opportunity to get all the noobs up to speed. Yes, you could watch all the old ones – but I who am I kidding – anything older these days is considered an antiquity by you spoiled kids. That’s right – get off my damn lawn!
Not a very exciting session by any measure but a good learning experience if you are not used to handling what I call the ‘slow burn’. Usually you get a small divergence but things could still fall apart – like yesterday. But then things level off – the signal goes quiet – and quiet has not been good to the bears in the past few years. Then VWAP breach – and then instead of the bang you get the slow burn followed by a fast candle stopping everyone out. Can be nasty for stubborn trades who took on short positions near VWAP and are unwilling to be proven wrong. Well, they often accept defeat eventually when they are forced to chase for a bid as things explode higher. Timing is everything and cooking yourself in your own juice of bias and opinions is an expensive hobby – unless of course you are into that German S&M stuff.
The future is now – so don’t bring a knife to a raygun fight. If you are interested in becoming a Zero subscriber then don’t waste time and sign up here. A Zero subscription comes with full access to all Gold posts, so you actually get double the bang for your buck.
Today I’m going to go Japanese on you guys as Yen setups seem to be on the all you can eat menu. But before we venture to the Forex side here’s a quick reminder of where to expect support should the SPX continue lower today or tomorrow:
1380 still stands as we only dropped to ES 1386.25 today. The fat lady hasn’t sung yet and we just pushed above VWAP – it’s yet unclear if this is a floor attempt or if we’ll see more downside. FYI – the Zero signal is rather weak and I don’t see the bears getting any gold stars for effort here.
That EUR/JPY trade I posted on Tuesday paid off handsomely but we are now bouncing off support. I took positions off the table once we pushed outside both hourly Bollingers. It’s a bit too late to get into a long trade here but wait – all is not lost yet, we have a few more Yen pairs in the running:
More charts and cynical commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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