"Where do we go from here?.... " monetized that move?
E$ continue its roller coaster ride casting doubts in the mind of the bulls and bears. I was expecting a firmer finish but instead it closed nearer to the day's low despite a late bounce in the equities. Dow Jones has already had 7 straight weeks of losses and will this make it the 8th?
Technically, a break and with price trading below the major trend lines is definitely not good for the bulls and a weak close yesterday continue to reinforce that gloomy picture. To add, it is gets even more worrisome when more are talking about the record level in the net E$ short positions. On the other hand, I cannot ignore the fact that bullish divergence has emerged and it signals that we are close to a near term bottom. In situations like this, chances are that we may see another very sharp sell-off followed by a sharp reversal to complete the last wave before a more elaborate recovery.
That should guide one not to jump headlong into selling. Bottom fishing? may need more signals to commit for now. Just remember, whatever it is, always place a stop.... the market is always right!
For today on wide, 1.2400/30 to hold and 1.2620/30 to cap for now. All the best and I will resume my update from the 6 Jun.
|E$ Weekly Chart|