Wednesday, 27 October 2010

TMN Roundup on SPX, TYX and USD

As TMN has pointed out various times over the last 10 days, we are in the middle of a top building process in SPX. Tops are tedious procedures and sometimes seem to be taking forever. The short term trigger SPX (cash) 1171.5 has been hit today which suggests that a test of the mid Bollinger Bands (today @ 1168.87) on the daily charts is not far off. In an ideal world we will want to see a few closes below this level and head lower from there. 

         please click on chart to enlarge

TYX is advancing as expected and has now cleared the area around the 38% fib level between the April 2010 top and the recent low. There is a small chance for a short term pull back, we will have to wait and see, could be noise..

         please click on chart to enlarge

The USD is helping the case for both of the above mentioned views, as it is on the upward path today. TMN mentioned last Sunday that the DXY set up on the weekly charts was the strongest in years and this week we are getting a flavour of how this might play out. For a change TMN is posting the USD related ETF (Ticker UUP).

       please click on chart to enlarge

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