Note how volume has tailed off as the trading day has progressed, as we've stayed within a range defined by yesterday's highs and the overnight lows. Gold is trading lower; oil and the U.S. dollar vs. euro are trading in short-term ranges; 10-year Treasury rates are higher.
Should the range continue into the close, this will set us up for breakout trading alerts early in the week. Given the strength of the recent rally, it would not be surprising to get some consolidation of the gains this coming week. Because price highs normally follow from momentum peaks, I would expect that backing and filling to ultimately lead to higher prices.
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1 comment:
Well, certainly is pretty darn bullish- since March, 45 degree trendlines are a rarity, let alone in 6mths.
I know this is in your territory Doc, but from psychological perspective, I think its pretty hard for any downwards thrust to gain momentum if something doesnt grip the imagination of the public; i.e. strike fear.
I hope you had a good week Doc, my ES trades has been quite a disaster this week, sort of made up for it in commodities & currencies though.
And here's wishing all Muslims a Happy Hari Raya!
---- Monday is Hari Raya Puasa (End of fasting month) and 27th Nov is Hari Raya Haji (celebration of prophet) ----
For those who are unaware, just treat those 2 dates like the Christian's Thanksgiving & Christmas =)
Peace to all!!!
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