E mini Dow and USDX

Sometimes it's very easy to get bogged down in the detail of price in low and micro time frames and often its a good idea to step back and look from a distance, hence the chart below which reveals we are at a critical area. I am not saying that equity markets are about to fall and we must remember that they have the most impressive ability to bubble higher and higher for what may seem like an eternity but it is worth pointing out that we are currently at the first 100% reaction line of the mother of all pitchforks in the e mini Dow / YM. with what was a highly significant low as the P0 for this p-fork. Look how price behaved around the previous 50% reaction line and see how price penetrates and passes through the reaction line and then price is distributed as it falls in front of the line. This is why we use 'mirror lines'. I am also mindful of the pattern we are seeing in the Dow ( cash and futures) whereby a series of sideways tops are being observed with only marginally higher lows and marginally higher highs. It's a more positive pattern in the Spoo's but still we seem to be range bound and its a bitch to trade. All eyes on this Fridays (post Fed shutdown) NFP's but I can see one scenario whereby we could see one more effort to move higher and a new high and then top out and fall.Similar to the 50% reaction line behaviour we saw in 2011. Again look at the centre line of the pitchfork for support. Alternatively we could motor ahead and zoom through and clear this reaction line but i favor this less.

Take a look at the US dollar Index and this reaction line study...here's a previous more detailed explanation:

EurGbp

A rare look at Crude Oil ( CL Z13) $95.80 shows support from long term median line plus is near term CL objective ALL at .618 Fib RT level

                                          and another RL study of CL Z13 showing the same pitchfork

note the .618 Fib RT bang on the centre line objective

Gold plus Emini S & P : Schiff median line + reaction lines

Gold seems to have peaked and run out of momentum. My eyes rest on this market  for a further break out and retest above $1350

If you superimpose the reaction/median line matrix over the simple bline and 2 x stochastic template you will see the short stoch ribbons pattern below

ES Z13 below shows a sweet Schiff pitchfork that often can be drawn where no significant low is available. The reaction lines reveal just a fraction of the price matrix.

E mini Dow & E mini S&P

Emini Dow & Emini S & P...confident and assertive price action

15385 on YMZ13 is the target

The ESZ13 is already at the blue centre line at 1714.50

Strong price action and a healthy trend despite the gloom mongers.

E mini S & P, USDX, T-Bonds and the Dow

This is critical. A failure to touch the up sloping centre line of the pitchfork seen below could be another brick in the topping formation and at a critical psychological 1700 level. The downsloping black Median Line is to be watched closely people!!

 Cash Dow

 USDX

Emini S & P & Dow & $SPX: This is unbearable, untradable and best left to scalpers....but are we seeing the formation of a lower low?

 I thought i would just explain to everyone outside my subscribers that I am bitterly disappointed with current price behaviour. We can all see that price is in a short term down trend being ground slowly lower but yet still has the ascending  pattern intact. However watching these US makets is almost worse than having a tooth pulled out. I am not going to even start pontificating on the politics behind the current issues which I believe is best left to a domestic US audience. The fact remains that we are still at critical levels as per the chart below and my previous post and as we seem to be unable to make significant progress lower towards the centre line of the down sloping black fork seen in the first two charts.:

Keeping it simple:

Here below Pitch Fork D-E-C shares the same LMLP as A-B-C

Adding the reaction lines and detail:

 

Emini S & P + E mini Dow continued... Is this a long entry area 1665-1670 ES Z13?

Here is the supporting green UMLP as per previous post

Using our proprietary " FNL" Pitchfork we draw this upsloping blue FNL PF plus its reaction lines. The PF's seen above can also still be seen but as thinner lines.

Now look at a more detailed chart using MT4 showing the .618 Fib level below plus the centre line objective for the downsloping blue PF ( seen below) which is about at 1645.
This current area is critical. A break below this area would mean a retest of 1650. I have no long position yet but either we are going to blow out the ascending pattern and go lower or we hold here. We wait for the opening and the dust to settle.

The irony here is that YMZ13 has reached the centre line of the equivalent downsloping black fork (seen in the chart above as blue).