Friday, 22 May 2015

S&P 500 grinding higher but volume on cash market suggests ongoing distribution

First chart shows the cash S&P 500. Look at the volume bars. In recent weeks, almost without fail the volume on red days has been higher than the volume on up days. Classic distribution, a topping sign. The market is grinding out new record highs, but if you can't find better opportunities than long the S&P 500, or at least healthier opportunities from a technical analysis point of view, you really aren't trying!



Daily chart of all sessions trade shows the S&P wrestling trend line resistance. 



Gold attempting to rally from short term trend line support

Gold is attempting to rally from short term trend line support. Best be aware that the larger trend is down, as illustrated in last weekend's post.


EUR/USD stuck in tight spot between key support and resistance trend lines

EUR/USD is stuck in a tight spot between key support and resistance trend lines. BTW it was pretty pleasing to nail the turn down from the longer term resistance line, shown below, but better illustrated in last weekend's post.


AUD/JPY breaks trend line support, at forefront of big decline?

Daily chart shows AUD/JPY has broken trend line support. The Elliott Wave count indicates it may be at the forefront of a third wave decline.



Weekly chart zooms out and shows a bigger picture wave count. It's too early to project targets, but much lower than current levels.