MBO Issue 29 (May 2014) S&P 1900 In Sight
- Euro In Monthly Compression
- S&P 500 Weekly Uptrend Intact With Key Support Level Established
- Gold Bulls Need To Overcome This Hurdle To Get A Rally Going
- Big Picture Summary
Euro found resistance at channel mid and then dropped to 1.367 for its first test. The flush completed a 3 pushes down pattern, giving us a reversal with target of previous year high around 1.39. We got the target in one steep rally. Euro then failed to clear the resistance, giving us another sell setup but 1.38 has been acting as support since.
S&P made its new high as expected early April. That ended with a FBO as NDX was able to push back up to its resistance only. The FBO gave us another stab at the original channel top but the selloff is not strong enough to clear the support. Once again, we find S&P stuck at the same price level.
Gold tried very hard to lure in buyers as the crisis in Ukraine re-escalated. But it failed to clear the resistance zone and now stuck again at its natural support area.
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