I haven't much to add to my ES & SPX charts from yesterday here so I'm going to concentrate on other things today. Support is still at Monday's low and resistance is still at last Thursday's high so a break of either with any confidence should deliver the next significant move. I was asked yesterday whether in effect I was saying that a break higher should be followed by more upside, and that a break lower should be followed by more downside, and that is exactly what I'm saying here, and is a good description of any setup confined between strong support and resistance levels. Obviously we are a lot closer to resistance than support here at the moment.
I've been looking hard at related markets for directional clues this morning and the first of those is USD. I posted a chart on USD a couple of weeks ago showing a possible IHS right shoulder retracement. That chart looks very compelling this morning, and my target in the 77 area is supported by rising channel support there as well. Looking at this (ultimately bullish) chart more short term downside on USD seems likely:
LATE NOTES - After the jobs news GBPUSD and EURUSD are breaking down so a decent bounce on USD here now looks more likely. ZB has broken down very hard and I'm watching that huge H&S neckline. Copper has broken the declining channel so that looks much more bullish now. Apologies for the late post today but I'm not feeling well as my household disease vectors (children) have been busy this week.
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