The market has traded three days high to low in a steady down trending hourly channel. The last hour on Monday saw this channel go parabolic to the downside. The market has already begun to consolidate this move with a reaction up in the Globex session. 1882 – 1884 is strong upside resistance. (1890.25 was a previous swing low on the Daily charts). To the downside, 1868, then 1863.75 are the main reference points for Tuesday…..1857 is the lower Keltner channel on the weekly charts.
The Ten year notes have a Sell divergence on the 2-period ROC. The Bonds are approaching the 3% yield level. Tens and Bonds can have a reaction back down…141’25 is the 120 minute EMA and 141’17 is the 240 minute if the 120 minute does not old. So far it has served as the lower end of an up trending channel.
Crude has a breakout formation. It remains on an extended run to the downside.
The Dax has had 8 lower lows in a row. It is due for a consolidation day. Let the DAX set the early tone for SP trading.
Have a great day!
Markets in BO Mode: