The Markets are still sleepy (excluding the GBP) and it seems like the markets are waiting for something to kick them out of “vacation mode”.
We have Trump speaking later this week and banks reports on Friday – Two key events that can kick start the new trading year.
The video below provides an update to this week’s newsletter (read here) with updated analysis for $SPX, $EURUSD and $DXY.
In addition I’ve included charts that weren’t mentioned in the newsletter like Gold, DAX and FTSE.
SPX – Potential False Break scenario
S&P 500 couldn’t hold last week’s new record highs and closed below 2016’s record levels.
By doing so it created a potential False Break scenario that can be triggered if $SPX will close below the Fast MA line, that for now holds as support
European Indices continue to push forward
As you can see in the YouTube video, UK100 (FTSE) and the German DAX are enjoying a much better trading year opening than the U.S indices.
UK100 continue to travel north on more GBP weakness and the German DAX is slowly grinding its way towards the completion of a weekly bearish harmonic pattern – Bearish Bat (read more about Bat patterns)
See the video to hear me talk about the different scenarios in these European Indices