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The charts and comments in my Blog (posted in Eastern Time) represent my technical analysis and observations of a variety of markets...
*World Indices *U.S. Indices *Futures *U.S. Equities & Sectors *ETFs *Commodities *Forex
...an expanded version of the "Observations" section in my private Daily Trading Journal.

*** N.B. to my readers: Although I stopped trading in July 2013, I still take a peek at the markets now and then and post the occasional article here on my Blog.
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Reflections

Reflections

EVENTS

Earnings Calendar: Courtesy of Yahoo! Finance
Fed's POMO Schedule: at this link
Wed. July 30 @ 8:30 am ~ GDP
Wed. July 30 @ 2:00 pm ~ FOMC meeting statement & interest rate announcement
Fri. Aug. 1 all day ~ Motor Vehicle Sales
Fri. Aug. 1 @ 8:30 ~ Unemployment Rate, et al

Thursday, 3 November 2011

Head & Shoulders vs. Double Top

The case in favour of the Major Indices forming a H&S pattern on their Daily charts appears to be fading, with the Dow 30 and the Russell 2000 putting in a much higher right shoulder on today's action...there is still a chance for such a formation to play out on the S&P 500 and the Nasdaq 100...please refer to the Daily charts below. The Dow 30 is just shy of the next resistance levels at 12100 & 12200, while the other three closed at resistance levels.





The Financials ETF, XLF, closed today in between resistance and support and has put in a slightly higher right shoulder on a potential H&S formation, as shown on the Daily chart below.


Everybody's favourite, EUR/USD, is also in the process of forming a H&S pattern...price closed just below the falling 50 sma, price resistance, and the slightly lower right shoulder, as shown on the Daily chart below.


Since each of the above instruments has rallied since the beginning of October, I've brought in the following percentage comparison Daily chart to compare their relative strength. The potential H&S pattern can be seen beginning from October 21st. It also shows that the EUR/USD has been weakening and lagging in the rally since October 10th. I'll be watching for signs of a decline beginning in the EUR/USD and whether the others weaken and follow suit over the next few days/weeks. Whether these markets decline from a H&S pattern, or possibly from a double top remains to be seen.


In addition and for comparison purposes, I'll be watching the VIX, DB, Gold, DBC, $CRX, AUD/USD, the Australian Stock Index ($AORD), the Portuguese Stock Index ($PSI), the US $ (/DX), and NKD as referenced in my prior posts from October 25th onwards.