MBO Issue 23 (Oct 2013) US Dollar Inflection Point
- Euro Channel Overshoot
- S&P 3 Pushes Up Boundary Test
- Gold In Weekly Breakout Mode
- Big Picture Summary
Euro challenged the channel resistance early October and moved back down swiftly. Since then it held the 2012 year high as support. Confirmed breakout gave us a new swing high of equal distance from the channel comparing to the spike low made in July.
S&P dropped 5%, the minimal pullback expected, and found support there once more. Breadth oversold condition started a very strong rally / short squeeze taking S&P to new high and above the channel top.
GLD dropped below 125 as expected and then found short term support at the 120 area and traded back up to the initial flush low of low 130s.