01.02.2021
Is the CORRECTIVE MOVE in markets over ?
That is the question we have to ask ourselves going into 2022. Where are we in the cycle.
NASDAQ DAILY – The index looks like it still wants to correct lower. The fist weeks of the year will be indicative, we want to see more price action.
SPX – Undeniable strong TREND. There is some NEGATIVE DIVERGENCE showing. To gain confidence in a reversal we would need more selling pressure.
DXY – We are testing short term support, the momentum seems to be favoring more selling, and we know positioning is also skewed. We feel we could see another 150-200 basis points of downside.
CROSS JPY
EURJPY DAILY : There is a support line in most Cross JPY pairs. EURJPY 127.40-60 region is supported
AUDJPY – Similar story, support around 79.00
We need to determine if this is a short term TOP in Cross JPY, if so, they are A-B-C structures. That would coincide with RISK (equities) correcting lower. AUDJPY would look like this:
There are some questions that will get answered with more price action. For now, we favor LONG USD positions and want to see more price action to determine if we will see additional pressure on RISK and therefore in CROSS JPY.