Tuesday, 26 April 2011

S&P 500 hourly

Breakout of corrective channel, will likely lead to a test of last week's high, and possibly a test of 2011's high from mid February at 1345. Note that the breakout happened at the same time as the AUD/USD broke its trend line. There has been a high correlation between the two markets for many months now.

AUD/USD hourly

Breakout of corrective trend channel, will likely lead to failure of double top.

Silver daily

Silver has seen a decline of 10% within the past 24 hours. Set that against an advance of 150% since last September. It's too early to call a top, but parabolic advances such as silver's typically end with a sharp reversal, followed by a relentless decline.

AUD/USD hourly

The possible double top remains in place. The down trend line provides a "line in the sand" for the bearish case, suggesting any move to 1.075 would raise the odds of new highs. Bear in mind the larger degree up trend, on every timeframe higher than hourly.