If these are valid resistance levels, day-day price action will show up bearish reversal patterns that are very easy to spot in the zigzag action.
Based on these patterns, we are in consolidation phase before main trend asserts itself. However I look at these 3 charts of AUDUSD, AUDJPY and SG30, bullish is not the word to describe.
Add this 3M chart of the same AUDJPY-SIMSCI divergence theme. What’s notable is that AUDJPY appears to be stepping down to a lower range where it traded between 2010 – late 2012 while SG30 remains at lofty levels.
Look at NZDJPY which has potential to fall off a cliff and make a big move. SiMSCI could have topped with a very common reversal pattern. XAUUSD is also looking toppish and could turn out to be a disappointment to gold bulls.
Daily and weekly analysis of SG30 (SiMSCI) based on exponential moving average lines as well as time period boxes. Trend is in bears favour as price has printed lower highs and lower lows in the past 3 weeks. Moving averages are now showing resistance as well as breaking down to lower lines.
Price performance based on this chart of SiMSCI shows that the last four weeks, only market sentiment and chart level matters. Did any fundamentals change in 4 weeks? Fear driven correction, then V-shaped rebound absent any meaningful narrative. Time more than even to pay attention to fundamentals.
This is a post-CNY update with a look at CME odds of a March rate hike (83%). Additionally I take a closer look at JP225 and SG30. JP225 is clearly the weaker leg in the correction and their relative performance suggests JP225 has more to lose. For SG30, recall that 399 is a strong level to test.