We focus on Stock Indices in your members’ update video.
In today’s update, we also provide you with images and our analysis of the charts. Scroll below the video to see a more detailed analysis.
A Crucial Time In The Markets For Stock Indices.
We are seeing a disconnection from the FTSE, US transport to the DAX, S&P and the Dow. You tend to see this at the top of market trends. We will wait for signals to short. The Dollar Index is coming out of a wave 4 pullback which is keeping the EURUSD up. We do expect more downside but not until this wave 4 is completed.
We now have a green PTS signal which means it’s time to exit the short trade wave 3. This creates a great 700 pip move! Wave 4 should retrace back to at least 11,800. From these areas, we will look for new red sell signals to move it the final wave 5.
Cable is strong today. We’re working our way up to the 20 EMA where we should break through. With the Dollar pulling back we
should see more upside in Cable. This morning, we saw the FTSE 100 selling off which in turn, should strengthen this market for a few more days.
US Dollar Index
Opposite to the EURUSD. We have a wave 4 in play on the Dollar which should push the EURUSD higher. We then expect
to get a new green PTS buy signal which will then push the Dollar to new highs.
We continue to see a red PTS short signal so the downside continues to be it’s chosen trend. However, with the Dollar pulling back in its wave 4, could we see a small pop higher in Gold? At the moment we have no evidence that this is going to happen. The bigger picture signals more of a downside on Gold. The weekly chart is pointing to more of a downside from our Storyteller Indicator.
We continue to see a red PTS signal which has brought in around 400 points profit over the last few weeks. One thing that stands out for us is the bearish signals on the 4-hour chart. If you place the Storyteller Indicator on that chart, it will signal that a reversal is coming. If we expect this then we should turn on the PTS trailing stop and adjust the stop number in our broker. We also have a Money Line at 64.23 so this could also be an area where we bounce. The message here is to tighten stops.
A strong move higher on Tuesday morning brings this chart into a very interesting daily resistance zone. If we believe the 5 wave sequence is complete then we should push higher into a wave B. The B wave attracts the last of the bulls who will soon be disappointed as price fails to go higher and then rolls over. Today we are seeing a brand new buy signal on the PTS which could carry prices above 13,000. We will be watching other Indices closely and then look for the B wave to complete on the DAX for potential short red PTS signal. Long for now.
New PTS buy signal yesterday could push this market higher to 24,954. With the Indices disconnected these last few days, we must make sure we’re position sizing correctly and using a stop order. The Dow’s smaller time frames have bearish divergence signals so we will monitor this market closely. What we do know, is that it’s not a continuation of the bull market that we’ve seen since 2009. It’s more like the end of that trend which is struggling to find it’s feet. Outlook on this market is a cautious buy signal.
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