Wednesday, 19 June 2013

All quiet ahead of the FOMC. USDX and ES and YM

Continuing from yesterday's chart the US Dollar index (ICE US) remains rangebound. If we apply Andrews theory it looks weak as it has failed to meet any objectives but this can often happen in a non trending sideways market and such conclusions should not be drawn too quickly. The black LMLP still supports price (see below) even though the CL of this fork was never reached and this line has previously been responsible for several pivots. Again weakness is indicated and a dip down to 80.00 is possible and more likely but the impetus for whatever direction we will move is more than likely to come form the Fed.

The emini Dow looks like it's topping out along the reaction line again even though we have popped up through it. We need to take out the prior high at 15290 (YMU13) and the emini S &P again looks toppy. Again the FOMC will be the stimulus for price direction.

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