Rising
C wave of Flat correction (II) rising soonits seems this correction is a WXYXZ (triple ZZ) . but wave (x) triangle ...?
PINK FUTUREI think we will rise this year. Depending on that we will soon return to 445, after the breakthru at 468 I target around 530...
Sure there is still a strong downtrend to 380/90 but I see no need for that since we're still in a growing market.
EURUSD in a rising wedgeDown swing is expected, however a north - shot is possible.
Details are on the chart.
A Bearish Rising WedgeI see two wedges of resistance that if can't be overcome could lead to the downward correction. I will be watching the price movement closely and if close below that rising wedge support I will strongly consider going short SPY.
Andrew Thrasher at SEE IT Market has highlighted some interesting anecdotal market cycle that has its next significant milestone on May 11th.
Weekly Rising WedgeThe ECB will release their decision regarding stimulus tomorrow with reports already emerging that there will be 50 Billion Euros worth of stimulus released per month until the end of next year.
Their final decision will probably be one of the most important factors to determine if this bull market to continue.
If their decision is taken negatively, then the rising wedge could break and cause a trend reversal to settle the index at around the 1800 level as the next major support.
The 1990 level is crucial at this point and is my personal entry level for a short.
Goldman Sachs Short - Overbought Momentum LossGoldman Sachs is a short to me here on the daily for a quick short. I'll disclose now that on the Weekly chart I am long based on the giant indented head and shoulders and the smaller head and shoulders that makes up the right shoulder. That is in my IRA however, as I do not purchase stock (writing covered calls) in my trading account simply because it ties up too much capital (usually).
The weekly outlook aside, I like what we see for a potential brief pullback here. Working from the top down, RSI is approaching it's previous two time resistance around 74, indicating to me that the stock is overbought. Both of these prior occurrences happened in the current trend.
Secondly, we have a shooting star after a two week up move, now followed by what looks like it will be a Harami. GS does not have a historical pattern of breaking out above the BB, even after a slight contraction in volatility. When it has, it's usually a quick retracement.
The one thing I do not like here is that OBV usually leads price and it has now crossed above it's 21WMA. Last time this happened it led a leg up. This time, however, over 50% of the move has already happened and it's just crossing positive, so perhaps it's not much to worry about.
IV%R is low in GS, at only 12% so that leaves the possibility of selling anything for a credit out of the books. That means I'm looking for a Long Put Spread basically. A diagonal wouldn't do because diagonals usually require some time passage, and this should be quick. Although I may keep an eye on the diagonal just to see how it would pan out. This low volatility market is no fun, and leaves my option strategies severely limited. Hopefully we will find some nice charts with higher volatility sometime tomorrow that we can enter some strangles and naked calls/puts with.
EURUSD - Will the ECB Bring the Euro Down?Will ECB take any action today and bring the euro down, or will let it burst above 1.4000.
From the technical point the price has drawn a Rising Wedge which broke the down trend line. This along with the negative divergence on the 28 periods RSI give a strong sell signal. A break below the lower line of the pattern would be a good confirmation for the signal. If the ECB will take no action today then we might see a break above 1.40 and the bulls might target 1.45.
