Wednesday, 20 March 2013

S&P 500 hourly chart trend lines worth watching #spx

All sessions hourly chart shown. The S&P has been channeling nicely on the hourly chart in recent times. The down trend line that I've drawn is a definite maybe at this time, with the emphasis on maybe.

AUD/USD trading range suggests it's headed for a retest of 1.06 #aud

GBP/USD there goes the daily high, maybe there's some good news on the way (no chart) #gbp

If you want to make sense of that title, read the previous post from just a few minutes prior to this one. Lucky I said it's headed lower IF today's high holds. Being able to precisely define your risk is the main strength of charting / technical analysis.

GBP/USD on a news heavy day, parallel trend lines suggest it's headed lower, if today's highs hold #gbp

The UK Central Bank release minutes from today's meeting a few minutes from now, UK jobless claims are released at the same time, then 3 hours later the UK Budget is presented to parliament. Later in the (GMT) day there's the small matter of a US Fed meeting.

What's a boy to do in the face of so much news? My suggestion is to ignore it, or if you must use it, view it as a catalyst for volatility. Invariably if a trend is down the news focuses on the negative side of events, and if the trend is up it focuses on the positives. The trend causes the news.  If you're interested in exploring that point of view, visit and read Socionomics In A Nutshell.

GBP/USD daily chart parallel trend lines suggest it's headed lower, so long as today's high holds. If so, I guarantee there's more bad news ahead.