The S&P 500 broke out from the small flag pattern I showed a few days ago and has now hit the 1310 open gap and 61.8 retrace- my target levels. I see price testing the 61.8 retrace across several markets and please see the charts below as a reference. From my experience, this is a formidable resistance level and I feel it is now time to be looking for low risk short setups with tight stops. Volume was once again unconvincing with total volume under 1bln on the NYSE and NYSE Advancing issues posted another lower high.
S&P 500 Cash 60mins:
Price has hit the open gap and 61.8 retrace. However, momentum has made a new high and thus it is important to see some bearish confirmation before shorting.
Nasdaq 100 Cash:
Emini June 5mins:
A bearish reversal candle has just formed after hours. The contract spiked to 1314 and has now reversed back to 1308. I believe this due to after hours reporting but this is a strong rejection no doubt
Eurostoxx June 60mins:
Has rallied right into the 61.8 retrace and previous breakdown level
SPI Continuous Day 60mins:
The SPI is indicated at 4750. This is right into the 61.8 retrace level and previous breakdown level. My plan yesterday was to look to get long on a strong breakout above 4700/4720. However, given where the market is indicated, I cant justify a breakout trade up here and I have missed the move. I am actually looking for potential fade trades up here in the first 30mins and then I will see how price trades. I am looking for res in the SPI at 4760/4765 and will short a strong rejection for a short term trade only until I see more confirmation.
ASX200 60mins:
MSCI Singapore looks set to continue its advance into the target zone highlighted yesterday. I will be covering my Taiwan short this am and reassessing.
EUR had a very strong bounce right off the support zone I showed last night. I am now shorting around here at 1.42 with a stop above 1.4250. We may see a retest of this 1.4250 level first but I am happy to short here for now as I believe the 1.42 level was well offered yesterday and we saw a strong rejection of this level on the lower time frames. Potential A=C bounce off the lows yesterday right into the 78.6 Fib.
EUR 15mins:
AUDUSD has rallied right into its previous Daily highs.
Good Luck
Austin
