Equity Charts Lead to Intraday Forex Opportunities
This was a much different trading week than we are used to. And I like it!! 40 points down and back up in the SPX makes for fun overbought/oversold opportunities in various markets.
Fundamentally, we had a slew of reports, most of them good, but again, I will be looking for "failures" in indicators such as initial jobless claims - can they keep their streak of improved reports going or is it time to slow down and maybe even retrace?
Technically, let's start with the equity markets and two views of the SPY. One of the past few weeks and another of just the last few days as that led to the forex intraday BUFFALO BOUNCE trades:
Will we have a double top at 1380 or will the recent "strong" unemployment report give us a few more days of uptrending markets? I won't even comment on "silly money", but we just went from 1340 to 1380 in 3 days...Overall, I would like to see the equity markets head towards 1400, but first, let's see what happens at "local resistance".
This chart is the segway into forex as the equity markets moved higher and then...flatlined.
When the flatline comes in equities, the flatline/retracement comes in the USD as it stops going down. The first chart is the BUFFALO BOUNCE in the EUR/USD and the second is the BUFFALO BOUNCE in the USD/CHF:
Let's hope this market movement stays around as it makes for very "exciting" trading markets!
Happy Trading and Be Environmentally Cool
Market Analysis Archive
- 1 of 25