There is a three bar triangle on SP, DAX and Russell. Breakout mode is possible, but there is good support just underneath at 2908. If the 3/10 sell divergences kick in and there is an increase in volume, 2895 is the daily EMA basis June SP. 2914.25 is PDL, initial support.
If the Nazdaq closes below 7798, it will be the first close below the 5 SMA after an extended run, setting up a Buy day for the start of next week.
Crude is also correcting momentum sell divergences. Downside should be limited as there is good support at the 6400 volume node.
$ can be entering extended run state to the upside after Breakout earlier this week. Retracements to the 60, 120 and 240 EMAs set up continuation patterns. The dollar is still stretched quite far away from its 5 SMA and so can use another day of consolidation. Trading range days for AD CD etc as they fill out range. Pinball SELL on the Yen.
Short any further up in Bonds. 120 minute provides possible U-turn structure.
Congratulations to Kyle – my new assistant, who is graduating from a special program at FAU and is now fully qualified to do fundamental analysis. He says he far prefers technicals and so we are going to “teach Kyle to trade.” I suspect he knows more than he lets on. If you see this tonight Kyle, I can’t wait till you can post our homework each night! 😉
Rock ‘n Roll – it’s Friday!