GOOD MORNING TRADERS!
Markets are tightly wound in front of ECB/Draghi……will DAX get full retest up…Will Russ get full retest up on 120….Excellent structure now in place for test of 120 high or 120 swing low.
Bonds had 120 Grail type of sale and made lower low. There are now 4 days with lower high and lower low, but the weekly cycle (see yield chart above) still remains intact. More of interest: EC – tight coil on intraday charts, poised for huge breakout. So far the Dollar uptrend has remained intact. lastly, Metals: bear flag has formed on GC and SI. Still will respect the fact that there can be volatility in EITHER direction off Draghi’s comments, but path of least resistance is down. Small short covering attempt on Tuesday and Wednesday barely got to 5 SMA on both of these.
Last two ECB meetings did not have nearly the fireworks as seen in the past. This one is the most anticipated one, as market is expecting ACTION this time, not just more jawboning. It is never the news itself, though, but always the market’s reaction off the news…. I wish I had Friday’s paper one day early.
Have a good day!