The new high attained by The SP 500 this morning correlates well with a “lower high” area on the Japanese Nikkei right here around the 15,100 level, as well with the U.S Dollar “again” testing the 80.20 level in $DXY.
As we all watch our own specific indicators / indices to get a better read on “where things are at” in a general sense, it’s my thinking that these things line up quite nicely, suggesting we’ve come into a solid area of resistance/support.
Should the U.S Dollar “finally” make a decent move upward, as well the Nikkei put in a “swing high” here (and create a “lower high”) we’d likely see this move retraced, as well perhaps – find some clarity in the medium term direction.
A move lower in Nikkei would suggest “risk off” as well a higher Yen/JPY and likely ( although these days…you never know for sure ) even a higher U.S Dollar so I’m far more interested in activity “over seas” this evening then I am in today’s “usual wash / rinse / repeat”.
Keep your eyes on Nikkei.
…hey that rhymes.
Forex_Kong_Face_Book
I can see higher high (january) and higher low (february) which looks to me more important than 15100 being good resistance/support – I would not bet on it now. Also with Japan ready to print more anytime.
And S&P500…I think everybody is expecting a crash…so anogher good reason for this to go up, too many people shorting.
A very interesting crossroad / area right here right now for sure.
I watch Nikkei closer than I do SP so…..( and not that this is by any means a perfect science ) 15,000 already showing as resistance.
We know Japan will print more, and I think the question that really remains is “will markets correct before hand? Knowing full well to bank profits, then just load up on the next round of easing? OR – just keep shooting for the sky with the understanding that more easing is on the way?
I’d like to see correction “into the easing” as – why not drive the Yen “upward prior” knowing it’s gonna take another hit?
But you know markets…..looking to catch as many traders off side as possible.
$tran – trannies would put in a lower high as well if indeed this thing doesn’t just blow right thru.
Something to keep in mind / watch as well as $BKX – Bank Index…also lagging the “rocketship SP”.
Not a bad intraday rejection on the spx…dollar set up isn’t exactly crystal clear but its not brutal either…..Nikkei looks like its setup for a drop…..this recent spx short squeeze was hard in price action but not much volume….might indicate max pain and the washing out of the last weak shorts……overall I think things are taking shape for a very profitable correction….not crash. Good luck! Nobody said it would be easy!