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Can This Ceiling Hold Us?
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Can This Ceiling Hold Us?

Can This Ceiling Hold Us?

by The MoleJune 2, 2016

Apologies in advance for the abbreviated post today but I have had my hands full since last night thanks to the SEC ruling regarding Forex accounts held by broker-dealers, which affected the IBs we are working with. It is a major pain in the rectum for whatever remains of the once thriving forex business in the United States; but I believe it’s a blessing in disguise over the long term as much of the retail liquidity is going to shift over to CME’s FX futures contracts. Meanwhile on the Forex side this means more consolidation over to the big players still standing: GAIN, IB, FXCM, TDA, Forex.com, and of course Oanda. Can’t be good for commissions and spreads, that’s for sure.

2016-06-02_spoos_roof

So we’ve got a pretty solid ceiling developing there on the short term side and thus far it has been holding. On the downside the E-Mini is also producing a slightly falling diagonal and that makes for a pretty interesting formation short term – shall we call it an expanding falling diagonal? Or perhaps it’s more of a wedge – whatever you call it, it’s going to produce a few swings here until it resolves.

2016-06-02_zero

I would follow the Zero religiously as this are usually the type of conditions in which it shines and produces valuable context for swing traders. Just look at those beautiful reversal arrows yesterday – any scalpers here? Anyway, if we get a breach outside of those trend lines on the daily chart then we may see resolution – either higher or lower. The odds are pretty much 50/50 here as we’ve come a long way and a little shake out can easily turn into a medium term one after about two or three sessions.

That’s all I got for today – see you again tomorrow morning bright eyed and bushy tailed 

About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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