Good Morning Traders!
This week will be dominated byt the ECD’s action mid week as they are set to pump hundreds of billions of euros into the economy, at the same the that China’s official PMI hit a 5 month high in May. The above charts show a topping formation in the ten year notes, as well as three pushes down on the yield chart. The bonds may have one more partial reaction up on the intraday charts – if so it can provide a shorting opportunity for a position. The ten years notes may continue to correct back to the daily EMA.
The SPs are overextended on this rally and due for a reaction any time…see the chart above. For today though, the Russell may well set the tone as it retraced back to the 120 minute EMA and has a 30 minute power buy structure. A close below Fridays lows can turn the intermediate term trend back down. Or, a breakout above 145 can lead to another leg up on the daily charts.
Currencies all had Sell Short Days, but much of this has played out overnight. The Yen had a downside breakout from a three bar triangle formation.
Nat Gas has a textbook Buy Day. Crude is establishing support at the daily EMA.
Both the Nazdaq and the DOW made new all time highs last week. This has been very well watched level. Several courses of action at all time highs: Market consolidates and absorbs the selling that comes in at these levels (very bullish). or, profit taking comes in and the market has a better correction back down. Put call ratios have still not reflected any frothiness.
Have a great trading day! First day of June!