Wednesday, 7 May 2014

S&P 500 slowly grinding higher, up less than 2% so far in 2014

Daily chart illustrates the S&P 500's up trend over the past year. A trend which has become a slow grind, up less than 2% in 2014 so far. That said, while this market remains above 1800, the up trend is well and truly alive, grind or not.

Weekly chart shows that the up trend is stretched. perched precariously atop the long term up trend channel, and unable to break convincingly higher.

ASX 200 testing trend line support

Daily chart shows the ASX 200 testing trend line support. Charts include after hours trade.

Weekly chart shows that the test of support follows a turn lower from long term trend line resistance.

Gold daily chart testing short term trend channel resistance, trend remains down

Daily chart shows Gold testing trend channel resistance. A move below the 40 day moving average and 1300 or so would be a bearish edge, as illustrated on the longer term chart that I posted earlier in the week.

Silver weekly chart suggests that a break of last week's low would target a 20%+ decline

Weekly chart suggests that a break of last week's low would break trend line support, and set Silver on course to target the lower down trend channel line, a 20%+ drop from current levels.

AUD/USD daily chart up trend continues, but upside potential looks limited

Daily chart shows the AUD/USD rallying through the short term down trend line. The up trend channel has been redrawn slightly since my previous AUD post, to better capture recent market action.

Weekly chart shows long term resistance around 96.62, though it is better to think of that resistance as a zone stretching from 0.96 to 0.98. Unless the market can beat that zone, in my view the downside risk far outweighs upside potential

EUR/USD daily chart trend still up, next target 1.4230?

Daily chart shows the EUR/USD breaking higher from the recent triangle, and continuing to trend up. The upside break from the triangle offers a measured target of around 1.4230. So why the question mark in this post's title? Aside from the inherent unpredictability of markets, it's worth remembering that triangle breaks decrease in reliability as price action nears the apex.... the EUR/USD got very close to the apex. Also...

... there's the small matter of the weekly chart showing long term trend line resistance at just above 1.40.