I've made a few posts over the weekend explaining why I think a rally from here (or close to here) is possible. We are going to open the week above last weeks close. For an inverted hammer candle to gain some traction as a reversal signal, that's a checkmark for bulls. The 4hr time frame has hidden bullish divergence which should also not be ignored.
The key this week will be getting over 3700 and holding it again. At that point the crash scenario will look less likely and we will probably start to see strong buying. Target of 1:1 is around 3870 to 3900 - top of the last melt down candle and test of the resistance zone. I'm wrong if they start breaking below 3570 (previous low). We may dip in the morning, but I expect buyers to come in since we didn't crash overnight. Good luck!
The key this week will be getting over 3700 and holding it again. At that point the crash scenario will look less likely and we will probably start to see strong buying. Target of 1:1 is around 3870 to 3900 - top of the last melt down candle and test of the resistance zone. I'm wrong if they start breaking below 3570 (previous low). We may dip in the morning, but I expect buyers to come in since we didn't crash overnight. Good luck!
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US Dollar wedge may breakdown today
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if we pullback this morning, this structure may act as the buy area
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Horizontal support holding, adding a few longs here
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Support broke and it looks like (as of now) they are going to test the smaller structure and take out Friday's stops. Still leaning bullish as of now.
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Looks like they are trading this, over 3650 and it will look better for bulls.
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nope they broke down, so now the smaller structural trendline near 3600 is in play. A spike below is possible
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reached trendline, bulls need to step in Transports showing relative strength today - sometimes a bullish sign. Under 3600 on an hourly close and this buyzone is not correct.
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getting a reaction after they undercut Friday's lows. Needs to hold the trendline for the day for Bulls to start coming in with more strength. Nothing is confirmed yet.
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looks like a bear trap after stops were taken out from Friday's low, The low should be in if we are going to rally
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here's the line both sides are trying to capture, bounce was from the weekly 200 sma
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US DOLLAR starting to break the wedge, not confirmed yet. Bulls are tough here.
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DJT transports still positive on the day
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daily candle shows indecision - Bulls held the 200ma weekly (bullish) and the structural trendline, but bears kept them under the high of the day. I'd say that's a draw and the candle shows it. If the dollar falls overnight expect the markets to rally, and the djt (transports) showing strength may be a hint. On twitter "great depression" was trending which I thought was interesting. Over 3650 and it will look much better for bulls but - solidly under 3600 tomorrow and it will look better for bears. ok that's it for the day good luck -
