Trading the Line

Slightly surprised by yesterday's selloff. Maybe folks are starting to beleive the negative currency devaluation theories.

I have drawn in an alternative T structure splitting the oscillator bottom and price low, and this may help to explain yesterday's toppy behaviour.

The futures are weak so we may test strong support just below at 1886 and rising. If we don't bounce there then the mid-point and more strong support at 1955.

No panic just yet, this may well be the low risk bullish entrypoint for the next move upwards.

Still holding up above 2000 – just.
Either we give up the level or we move on up from here.

Lets see what Mario has to say today.

Held at the important 1994 level and oscillator strong but flat.
Looks like consolidation at the highs in preparation for a move upwards rather than an end to the move.

Above 1984 still looking good. I still favor a grind upwards to 2020-2025.

Did we overcome 2000 on Friday? Perhaps.

We are now expecting an increase in volatility.

Watch the behaviour at the rising support and resistance lines in particular S1 and R1.

Survived the morning negativity and held above 1989. Was that all that is required to drive the market higher? Or the beginning of something more serious.Maybe just the effects of the 70 day pulse from May 15 and 20.

No reason to sell just yet – keep monitoring the oscillator for signs of further weakness.

Gripping onto 2000, and looking like a much needed pause in the uptrend before…

I think – a push up into a momentum peak on September 10. Well we will see.

Any pullbacks here should be contained by 1988 and rising – next target 2020-2030.

Interesting note for the next major Low projected for mid-late October – the 1950 area is now the cross-position of 55EMA and 20MA and this provided strong support for the April Low and last October low.

2000 but only just, indicating we just see a slow grind up or sideways now into the holiday weekend.

So we reached 2000 at last, and the knee-jerk reaction is to sell and take some profits. And maybe that's right – it has been a scream from 1904 to 2000.

The T structure suggests that we are not finished yet. So until proven incorrect look for higher highs and watch the trailing support lines for any hint of weakness.

Next major peak should be 10 September at about 2020. (guess)

Nothing much from Jackson Hole. Market pause for thought.

Keep looking for a momentum peak, trailing stop at 1976.

Unless there is a negative catalyst this is just floating higher.