The writing is on the wall
Today's action was a good set up for a big move in the next couple trading sessions. The EUR/USD got hammered and the market seemed to not pay much attention. On a different non-holiday weekday I think the averages would have seen annihilation. Some news tomorrow morning may be the catalyst to move us substantially lower and relieve some of the pressure on the scores shown below. Something to remember is that some of the gains during the most recent impulse were "speculation for future Fed easing." If the numbers reported are "good" then that should be "bad" for the Fed junkies.
|DJIA 4 hr Chart|
The 4 hr chart looks like it is completing the "twisted ribbon" on this impulse. I've also turned on a bunch of other oscillators for analysis. I'm keeping a special eye out for bearish and bullish divergences. Big thanks to a friend (and regular reader) for recommending that!
|DJIA Daily Chart|
The daily is somewhat unremarkable, but I do note that the RSI is reaching it's highest levels in a while.
Best of luck to your trading!