These views are my own and this is not trading advice.
Technical :
Probably a few sensible stops at the 236% retrace area for the butterfly pattern failure around 1320/30
We are also at a bigger 236% retrace area at 1327 from recent lows. The butterfly pattern targets 1087 which is 50% fib of the previous bullish move.
200dma is sloping down so bias should still be bearish but in the previous move up we didnt touch the 200dma until we neared the correction point with a year of range play.
we have trend line resistance from two previous peaks, which is weak.
Pitch fork median line is being flirted with.
Bears are targeting 1087
Bulls want a longer term move to 1550
Summary :
A test of longer term 236% area at 1530 & failure to break above would look for a strong bear move to 890 area.
With this in mind and indices showing strong strength, or euphoria phase, all while bigger players slowly move their money out of indices and quietly into other area's, possibly gold.
We could see gold bears letting the bulls run into a bull trap at 1550 area and a pull back correction indices that is more than overdue.
A move from 1560 to 890 could be an extended AB=CD pattern and play its part in again creating an AB=CD pattern which would target 2550. This is purely speculation.
Technical :
Probably a few sensible stops at the 236% retrace area for the butterfly pattern failure around 1320/30
We are also at a bigger 236% retrace area at 1327 from recent lows. The butterfly pattern targets 1087 which is 50% fib of the previous bullish move.
200dma is sloping down so bias should still be bearish but in the previous move up we didnt touch the 200dma until we neared the correction point with a year of range play.
we have trend line resistance from two previous peaks, which is weak.
Pitch fork median line is being flirted with.
Bears are targeting 1087
Bulls want a longer term move to 1550
Summary :
A test of longer term 236% area at 1530 & failure to break above would look for a strong bear move to 890 area.
With this in mind and indices showing strong strength, or euphoria phase, all while bigger players slowly move their money out of indices and quietly into other area's, possibly gold.
We could see gold bears letting the bulls run into a bull trap at 1550 area and a pull back correction indices that is more than overdue.
A move from 1560 to 890 could be an extended AB=CD pattern and play its part in again creating an AB=CD pattern which would target 2550. This is purely speculation.