Wednesday, 12 October 2011

Weekly charts for S&P 500, EUR/USD

I have nothing much new to offer on these charts, just a couple of extra lines which may or may not prove significant.

I post them as a reminder. Please don't forget that the weekly chart trends are down for both these markets, and indeed for almost all undollar items around the world. Almost everything that is not a US dollar is trending down.

The current rallies may feel strong, but don't let that feeling deceive you. Look at these charts and you will see that the rallies are weak. They haven't retraced even half of the preceding declines in either market. S&P 500 volume has been muted in recent days, a further sign of a weak rally.

I am not interested in trading counter to the weekly trend, unless I see evidence on the weekly chart that the trend may be ending, such as momentum divergences, a completed reversal pattern or a rebound from a target trend line. I currently see no evidence to suggest that the weekly chart down trends are ending.

I will increase the frequency of posting when the daily chart trends align again with the weekly chart trends. That's my preferred playground.

S&P 500


EUR/USD

ASX 200 set to open almost unchanged

Daily candlestick chart shown below, including after hours trading, currently at 4226, compared to Tuesday's ASX close of 4228. The trend is down.