The four-block, below, shows weekly wedges in a number of different markets including equities, gold and the Eur/USD currency pair.
In each case, while prices are narrowing, there is no resolution, yet. The most likely resolution of an upward slanting wedge is a breakdown below the lower wedge line, and a re-test of the line with a subsequent failure. GOLD looks to be the closest to this scenario at the moment. Nothing suggests than an upside resolution of the wedges can't happen, but it is the less common scenario on this time scale.
Upside resolution of wedges happens most often on intraday timescales as first waves and A waves are being built for corrections.
While prices are being squeezed in a wedge calm, patience, and flexibility are required.
Have an excellent start to the weekend.
TraderJoe
If we could count the Yardeni Research, Central Banks: Monthly balance sheets figure 6, then the rest would be easy. Ten seconds on that chart really does free up some time for hunting and fishing. :)
ReplyDeleteDidn't understand. Explain please
DeleteSince 09 all the market cares about is if somebody is printing. If you google Yardeni Research Monthly Balance Sheets and look at figure 6. I think its the only thing that matters on the fundamental side anything else seems to be not worth the time.
DeleteThis is not to say the smaller time frames are not effected by economic reports, but the larger time frames don't seem to care, the market goes to were the printer is.
Thanks. That was more helpful! TJ.
DeleteStrong divergence with equal weight, large cap is holding up the market. I hope we aren't waiting on congress and this debt ceiling debate. Government spending on infrastructure most likely will drive the markets. Fed tightening and rising commercial real estate vacancy which is putting pressure on regional banks leaves us stuck.
ReplyDeleteES 4-Hr: just a reminder of the shorter-term potential channel, wave-counting-stop and an interim support/resistance line that provided a Friday bounce, but not higher close (see up/down arrows to determine support/resistance).
ReplyDeletehttps://www.tradingview.com/x/Ywwh60eM/
TJ
ES 30-min: here is the intraday wave-counting-screen with updated daily Pivot Points, Bollinger Bands and 18-per SMA, 100-per SMA, Slow Stochastic and Fractals.
ReplyDeletehttps://www.tradingview.com/x/vVk8vDwm/
There have been a number of fractal breaks to the downside. The wave-counting stop remain where it is on the ES 4-hr chart. We are still in the 4-hr channel with some lower trade after the overnight highs.
TJ
All world markets in a tight range.
ReplyDeleteA new post is started for the next day.
ReplyDeleteTJ