Wednesday, 2 July 2014

Dow bearish wedge continues to form, long term chart indicators warn top is near

Daily chart shows the Dow's bearish wedge continuing to form, hitting new record highs in the past 24 hours. The upper trend line is currently at 17080. Will the market rally to hit it, or slightly past it in the form of a false break? That's what I'm looking for.

Long term monthly chart shows that the Dow has formed a huge bearish megaphone top. A move below the June low would indicate that current levels are a false break higher, and would be the initial indicator that the market is beginning a move to below the 2009 low. Bearish divergences on the MACDH and RSI support the view that this rally is on its last legs.

Both charts include all sessions trade through to the current European session.

Nikkei again testing 23 year old down trend line

Monthly chart shows the Nikkei once again testing the 23 year old trend line.

Zooming in a little for clarity on that trend line test. If the market still considers this line important, 15500 should not be beaten.

Chart includes all sessions trade through to the current European session.

EUR/USD testing trend line drawn from 2008 & 2011 highs on weekly chart, plus daily and hourly charts

Weekly chart shows EUR/USD testing the trend line drawn from the 2008 and 2011 highs.

Daily chart.

Hourly chart shows the market turning lower from dual trend line/channel resistance.