Monday, June 21, 2010

Key Reversal Days

SP's , the Euro and Gold  had Key Reversal Days to the downside, the USD had one to the upside of course, and Natural Gas nearly had a key reversal down, but had failed to make a new high by 2.5 cents.
All in all an interesting Monday. And Mondays in general have proved to offer up a lot of trading opps (sell side) as low volume days that  proved easily gamed the night before. See links
"Mutual Fund Monday" Update: 16 Out Of 17 Winning ...

In general, not that crazy about low volume signals of the traditional sort, but this simultaneous reversal of the "risk" trade is a great attention grabber. I mean every Central Bank in the world has now had a go and the markets are responding for shorter and shorter periods...
Lets see if there's a little follow through tomorrow.

For the Euro taking out 1.2178, the 50% retrace and a previous support point, ought to put the boot in it.

WTI did not get a Key Reversal, but it also looks done, having retraced 64% of the spot mo. chart move down and  52% of the July contract move.

For WTI lower lows under 75.56, followed by the 75.28 .382 retrace point would do for starters, but it will really take getting under 73.00, the .618 retrace of the last leg up , to confirm it's resuming the downtrend.
Once again the risk of a 3rd wave down in WTI and equities remains high, and with that, all that it implies..

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