Bearish Engulfing Dollar
I don’t have much to say today – no setups of interest on my end. Plus the jury is still out on our VIX sell signal – could go either way. In the meantime one chart is worth sharing as it irks me a little:
Ole’ bucky is a bit of a puzzle wrapped in a shroud of mystery right now. First we get that push into 81, establishing new support near 80. But now we’re painting a clear bearish engulfing candle, and as you may guess by its name – it’s not a good sign!
Someone in the comment section yesterday mused that this push higher may just be bull trap. We shall see – at minimum it’s not good to see a candle like this when it should be heading toward its 82 target area. As I’ve said yesterday – this is very dangerous tape and I don’t see any edge in participating until we get some clear signs. A VIX Sell signal would be a good start and if that one fails then we will have to be patient and wait for further instructions.
FYI – everyone still hates the Yen right now – not sure how long this can go on but I have no taste in stepping in front of a speeding bus.