The Mid-Week shuffle is in full swing.
NIkkei is retesting its Oct. 30 level it rallied from trading slightly lower on the month.
DAX..12,838.5 is where the Monthly ORL sell stops rest.
Support is app 100 points lower.
FTSE…blew off first and is now trading @ its 200 DMA.
You could see a bounce, however after last weeks ORL I would not expect to see more.
Spu’s…The intermediate Point & Figure shows a double bottom.
The long term Point & Figure needs to see the Spu trade another 20 points lower, into the mid 2540’s, for a reversal.
This would line up with a test of the Spu/Bond 50 DMA, a level not seen since September.
The Yen & Euro have rallied the past two days as all the hedged equity positions have been unwound, causing a bid to the Yen & Euro as their respective Equity Indices corrected.
MSFT shows its trading just below yesterday’s low in pre-market.
The algos are now painting the tape making pattern recognition a wait and see game for the following trading day.
30 yr. Bonds are trading @ its 50 DMA and the bottom of the cloud. This
is initial resistance.
VIX...13.06 is resistance. Sustained and closing price action above would leave way for 14.50.
I’m focused on the Spu’s holding this level and the Bonds rejecting right in here if the spread is to recover.
I’d be patient for the U.S. to come in to see how this plays out.