Sunday, October 18, 2009
The Daily Chart (top) remains Bullish but, the 60 minute chart is Bearish.
The ES is showing continued weakness. Tenkan-sen and Kijun-sen have a bearish cross and are below the Kumo as is the price. The Chikou is also below the Kumo.
From the Daily chart I have marked two levels of support. The first is near 1069-1071.
The lower part of the chart is a relative price of the EUR/USD compared to the SPX.
The Daily Chart includes the DMI which is showing some loss of momentum and a weakening DI+. This is not a sell signal but could turn into one if the green line DI+ crosses below the red DI- line. The true sell signal will be when the yellow ADX turns up on an increase of Bearish momentum. Daily Stochastics are over bought and MACD is undecided.
This may be a (wave 4) correction, but if it picks up speed I may have been the only Elliottician to count five waves up as a complete wave C. In any case I expect a bounce at 1071.
Analysis presented on this Blog has only informational, and educational purpose, and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 17:54