Eurodollar and the SPX Short Quick Post VI
I haven't been the best at naming my SPX/Eurodollar posts, but it seems that this is my sixth post on the matter over the last yearish. So far my most accurate calls on a macro level have been using the movements in the eurodollar to predict what will happen with the S&P and therefor the broader market. I am going to start on the S& 500 and it is just going to be charting, the linked posts will show some more TA and indicators.
The main chart shows a rising wedge on what looks to be a flagpole and a pennant with targets shown for full performance on both the wedge and flag pole. Price action slipped the wedge and support flipped to resistance if you do simple candlestick analysis on the main chart.
SPXUSD, the almost 24/5 CFD on the S&P, has a horrendus amount of bearish divergence on the MACD, MACD histogram, and RSI. The hammers show what I expect to repeat rather soon.
Likewise, the Eurodollar post shows the targets for a flagpole and pennant. this has the eurodollar going above 100, which means negative interestrates in what is in effect the true researve currency of the world, because it is the unregulated dollar outside of the US. Japan and China are extra-ordinarily exposed to the eurodollar so this will get interesting. Expect a lot of extra-ordinarily bad news out of those countries in the upcoming year. And that is relative to other countries going through the second great depression.
Generally I would need a lot more confirmation of breakout on the eurodollar chart, but the macro-view is strong, and the chart fundamentals are strong that the eurodollar will at least reach the target on the symmetrical triangle.
Conclusion
I am bearish, very bearish. Not financial advice, as I am just a guy making and losing money learning how to chart and trade. I have been swing trading SPXU and SPXL to great effect but I cannot recommend it for most people unless you want to start grinding the fillings out of your teeth. I have already passed that phase, it wasn't a happy time.
The main chart shows a rising wedge on what looks to be a flagpole and a pennant with targets shown for full performance on both the wedge and flag pole. Price action slipped the wedge and support flipped to resistance if you do simple candlestick analysis on the main chart.
SPXUSD, the almost 24/5 CFD on the S&P, has a horrendus amount of bearish divergence on the MACD, MACD histogram, and RSI. The hammers show what I expect to repeat rather soon.
Likewise, the Eurodollar post shows the targets for a flagpole and pennant. this has the eurodollar going above 100, which means negative interestrates in what is in effect the true researve currency of the world, because it is the unregulated dollar outside of the US. Japan and China are extra-ordinarily exposed to the eurodollar so this will get interesting. Expect a lot of extra-ordinarily bad news out of those countries in the upcoming year. And that is relative to other countries going through the second great depression.
Generally I would need a lot more confirmation of breakout on the eurodollar chart, but the macro-view is strong, and the chart fundamentals are strong that the eurodollar will at least reach the target on the symmetrical triangle.
Conclusion
I am bearish, very bearish. Not financial advice, as I am just a guy making and losing money learning how to chart and trade. I have been swing trading SPXU and SPXL to great effect but I cannot recommend it for most people unless you want to start grinding the fillings out of your teeth. I have already passed that phase, it wasn't a happy time.
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