XJO 0.85% 6,703.1 s&p/asx 200

mrowwwwww

  1. 9,803 Posts.
    Interesting night.. will spx go on with it?

    aud and usd have bounced against the yen, which is bullish, so the necessary precondition for a further rally is there. USA 10yr bond yields are flat at 5.08% overnight.

    spx has taken out the .38 reversal level, again a necessary precondition for a further rally

    BUT

    spx is now overbought on the hourly, suggesting at least some consolidation at this level or that progress from here will be a struggle. Its also a bit low in the flat trading range to be hitting overbought given that the previous time it hit overbought was 1540. And ig xjo cash hasn't matched the .38 level in the rebound nor has japan. The durable goods orders were well off expectations, and the usa fed reports tonight at 2.30pm usa time (very bloody late sydney time). ig cash xjo also is approaching expected heavy resistance at the lower line of the former downtrend channel.

    So, a short sharp shock and awe relief rally from spx with the suggestion that it has used up all its ammo already, and no confirmation from asia so far. At a minimum, progress from here can expect to be either a grind up, or a rapid rally which extends the overbought condition then followed by an equally rapid retracement.

    ya pays ya money and takes ya chances. Roll up roll up
 
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