EUR/USD - Is testing the Shoulder/Head/Shoulder neckline resistance near 133.05. Looking at the USD-Index (see my post from yesterday here: http://theelliottwavesufer.blogspot.com/2012/02/elliott-wave-and-technical-analysis-on_08.html) we could see further weakness of the USD. If 133.05 breaks the will be a resistance point just above at 133.35, which could force us back down, but only a break below 130.20 will ease the upside pressure a call for a new decline towards strong support in the 125.45 - 126.45 area.
VIX Index - Is at the wedge resistance line and a break above here we leave the upside open for a test of at least 23.65.Notice the divergence between the VIX-Index and DJI. While the DJI-Index is making new highs, that's not the case for the VIX-Index. Yet an other warning sign, that not all is okay.
Dow Jones Industrial (DJI) - Is facing at triple resistance, the MACD-Indicator is diverging. Trying to call the top, has been very difficult and in my view harder than normal, but times is not normal. QE1 and QE2 from the U.S. and UK. QE-E from ECB. All the money they throw at the economies has to go somewhere. In normal times, banks will lend out most of the money and they will steam up the economic engine, but that is not the case this time around. All the money goes directly into the marketplace lifting equities, commodities, junk bonds and other risky assets, which poses a risk for abnormal volatility.
Dow Jones Industrial (DJI) - Is facing at triple resistance, the MACD-Indicator is diverging. Trying to call the top, has been very difficult and in my view harder than normal, but times is not normal. QE1 and QE2 from the U.S. and UK. QE-E from ECB. All the money they throw at the economies has to go somewhere. In normal times, banks will lend out most of the money and they will steam up the economic engine, but that is not the case this time around. All the money goes directly into the marketplace lifting equities, commodities, junk bonds and other risky assets, which poses a risk for abnormal volatility. Enough of that, back to what the charts is telling us. Only a break below minor support at 12,782 and more importantly 12.529 will ease the upside pressure and call for a decline towards 12,250 and possibly even much lower, but for now we will have to concentrate on the upside as long as support at 12,782 stays intact.
Shanghai Composite - Is facing double resistance near 2,370. I does expect this strong resistance to turn the index back down towards support at 2,278 and 2,263 and most likely much deeper longer term.
Shanghai Composite - Is facing double resistance near 2,370. I does expect this strong resistance to turn the index back down towards support at 2,278 and 2,263 and most likely much deeper longer term. An unexpected break above 2,370 will lift the index closer to the 2,490 - 2,535 area.
Gold - Is close to an important cross road. Will we see a break above resistance at 1,763 or are we to break below support at 1,709? One of them have to give away soon. I prefer that support at 1,709 is the one to give away and force a more complex correction upon us. Longer term I still prefer a much deeper set-back in the gold prices towards the 1,287 area.
Gold - Is close to an important cross road. Will we see a break above resistance at 1,763 or are we to break below support at 1,709? One of them have to give away soon. I prefer that support at 1,709 is the one to give away and force a more complex correction upon us. Longer term I still prefer a much deeper set-back in the gold prices towards the 1,287 area.However we will have to respect a break above 1,763 and more importantly 1,803, which will call for a new rally towards 2,036.
When will Prechter fall on his sword and admit that we're in a new bull market?
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