Stock indices are looking stoppable. Why? Is it fundamentals? Technicals? There is a third explanation that however improbable, might just be the truth.
Despite the severe bearish action around the globe yesterday following Kim’s missile flying over Japan and a sharp, not-unexpected u-turn during US trading hours, stock indices really did not make any significant move. Major indices are still trapped between last week’s (Jackson Hole) range except for DAX. It is a loss leader…
Based on chart pattern projection and inspection of previous support resistance levels, these are potential targets for EURUSD, AUDUSD, NZDUSD and USDJPY.
1328 is an important resistance XAUUSD has to overcome. Above this level, potential to hit maybe $1600 by end of this year and then $1900 by next year.
Month to date overlay of EUR, GBP, NZD, AUD, CAD, SGD, JPY and CNH showing their relative performance/strength against USD. Three trading themes (performance clusters) to choose from.
USDCAD at decade-long resistance-turn-support. What are prospects of breaking this level in conjunction with second rate hike? Retracement before that?
If S&P500 continues to weaken, Real Estate (XLRE) could be next sector to tip into red. Chart pattern shows a bearish divergence and rising wedge that signals potential reversal.