All that glitters is not gold

And nope I am not talking about gold...

Interesting trend lines for the Aussi

As you may have noticed already, we use AUDUSD quite frequently to assess risk appetite among investors which turn out to be a good proxy for stocks markets.

We are seeing some important LT trendlines tested last week. Decay in momentum also increase possibilities of a deep correction after an initial pop early next week.




If the ST trendline (dashed) is broken, we can expect a sizable correction next week since major trendline (black) has been backtested and failed.

Recap II - Major indices

We were pointing out some interesting levels for OEX and DJT last week. We can now check how did they do at the weekly close

DJT



OEX



SPX
Regarding SPX this was our view a couple weeks ago, main levels were succesfully tested this week. See chart below for an updated view.




About Nasdaq we were seeing a LT picture back in October which suggested a ST pop just to drop after. Main levels were tested and respected this week
NASDAQ

SP500 bullish percent study

Though we may have a initial pop to ES 1095-8, this chart indicates that mkt internals will lead price down short after.

Recap I

Let's make a recap of the previous post to see what went right/wrong before further analysis this WE.

Here is an updated ES chart where I pasted previous posts headers at corresponding times just to see how did it look at those very moments: tops generally don't make you feel like market is "topping" but it may be doing so.
At those moments many people were seeing a super bearish market while many things underneath (like the one posted here) were telling otherwise

Heads up

How many heads up will some bulls need ???

Interest rates and stocks III

Do you remember this post ?

Check out the updated chart please...

Finally someone is honest with its clients...

source

TNX and EURJPY detached from bullish move= signaling a very possible reversal today

Market internals review

Hi traders,
Here I gathered some market internals charts, you know I use them very frequently since they usally lead externals components such as price. As you can see we have meaningful devergences among all of them which favors an upcoming pullback down or even a initiation of a down leg. In any case they favor the bearish case .
Also notice that Nasdaq is weaker and leading the path, so keep an eye on it next week.

Bullish percent on SPX making a new weekly low



Mc Os pulling down clearly




NYHL





NASDAQ internals:








As well as BPSPX it has made a weekly new low.

Proxys

Despite the VST technical bounce we are experiencing I expect more downside late today. I think this bounce may reach ES1093 but in anycase will be short lived.

These are 2 proxys I am following, look at the setups...

Confluence zones

Bearish setups all around, double tops, fake breakouts...
Among others we can see:

OEX




DJT