Some Moves In The Spoos
It’s been an interesting night so far. The AUD/JPY and the spoos have been painting some nice moves in the past few hours. First we got an exhaustion signal on the AUD/JPY and it was turning the right way until it was suddenly wiped out courtesy of a favorable AUS employment report.
Señor Cabrera smelled a rat and I sent an email to my subs stating that the hourly NLBL at 84.15 seemed to be posing resistance. Nevertheless I was a bit surprised when I came back to find the pair trading near 83.70 after watching an old movie. Boy, that is quite a failure and it may have implications.
Not surprisingly the spoos are not exactly a picture of health right now. At the end of today’s session that cluster of support near ES 1330 was not even in shouting range but we are scraping ES 1335 now as I’m typing this. If we breach through 1330 then we’ll probably go to 1320 tonight or tomorrow. I suggest you keep an eye on this situation. We may bounce back here – sure – worth a few long lottery tickets but if this thing drops through three consecutive NLSLs then watch out below!
Will there be blood sooner than we think? We should know by the end of this week. Thursday’s tape should be interesting to say the least.