Tuesday, 8 September 2015

S&P 500 futures up 2% from Friday's close, toward multiple resistance levels

The S&P 500 cash market closed Friday at 1921. Daily chart shows the futures have rallied 2% from that close, toward a cluster of resistance that stretches from 1970 toward 1990. Crucially, the trend is down, and only a rally above 2040-50 (!) would strongly shift the odds toward the August low being lasting. You can review my long term charts here, posted on the weekend.

Hourly chart illustrates yet more resistance lines.

AUD/USD daily chart showing bullish false downside break

Daily chart shows that AUD/USD has today rallied through trend line resistance, showing a bullish false downside break, after apparently completing five waves down. A completed five waves down at the least needs to be corrected, often by a move to the area of the previous fourth wave. It's worth keeping an eye on this, as a couple of cents rally is all it will take to bring AUD/USD back above weekly and monthly chart trend lines (lines illustrated in my weekend post), to have the market potentially completing big picture bullish false downside breaks. Let's see.