UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. Oct. 20 @ 2:00 pm ET - Beige Book Report
* Tues. Oct. 26 @ 10:00 am ET - CB Consumer Confidence
* Fri. Oct. 29 @ 8:30 am ET - Core PCE Price Index m/m Data
* Wed. Nov. 3 @ 2:00 pm ET - FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET - Fed Chair Press Conference
* Fri. Nov. 5 @ 8:30 am ET - Employment Data
* Tues. Nov. 9 @ 8:30 am ET - PPI m/m & Core PPI m/m Data
* Wed. Nov. 10 @ 8:30 am ET - CPI m/m & Core CPI m/m Data
* Fri. Nov. 12 @ 10:00 am ET - Prelim. UoM Consumer Sentiment
* Fri. Nov. 12 @ 10:00 am ET - Prelim. UoM Inflation Expectations
* Tues. Nov. 16 @ 8:30 am ET - Retail Sales & Core Retail Sales Data
* Wed. Nov. 24 @ 2:00 pm ET - FOMC Meeting Minutes
*** CLICK HERE for link to Economic Calendars for all upcoming events.
Thursday, November 03, 2011
Head & Shoulders vs. Double Top
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.