Wednesday, 4 April 2012

Triangle in DJI....EURUSD in trouble...vix gets tested

 Dow jones has a clearer sideways movement than S&P and I wanted to depict it. Probably near its end at the area of 13100. I expect the market to break to new highs in the next 3-5 sessions. If triangle broken downwards, 12900 and lower pitchfork support should be last resort for bulls. The form of the decline still does not imply a large downward move. Short term trend sideways, intermediate up.

 EURUSD after FOMC minutes, declined sharply. As I mentioned in twitter the hourly candle yesterday destroyed the chances any bull had regarding a pullback. The pair is back under the upper pitchfork and under the short term upward trend line. If the pair doesn't regain levels above soon, it will test 1,3050. I also mentioned yesterday that since eurusd doesn't break 1,3390 after going up there so many times, it will eventually break down.

VIX looks like it is going to test resistance at 17-18level. If 19 is broken upwards and then if 21 is broken at a daily close basis, then we could be seeing S&P test 1360 or lower.

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