Dollar Down, Stocks Up Big for 3rd Day-Short Term Reversal Favored
SPY volume was the lowest since 9/20, which was the date of the last top. A more constructuve view is favored at this juncture over the next several weeks and perhaps months but a short term decline is expected in order to correct the advance from the low. ES supports are 1129, 1120, 1106.50, and 1097.25.
Similarly, the AUDUSD is nearly 400 pips off of Tuesday's low and a top in Asian trading is expected. 9800 is viewed as resistance (if reached). A move lower is expected in order to correct the rally from 9387. Supports are 9670, 9600/20, and 9540.
The EURUSD is approaching resistance from the trendline drawn off of the 9/15 and 9/29 highs. The line intersects 13520 (former support) Friday and is resistance. 13350 and 13310 serve as support.
The GBPUSD reversed sharply today following the news that the BoE is expanding its asset purchase program. Reversals following news spikes are often legitimate as many sold at the bottom on 'bad news'. The rally that follows is propelled by those shorts covering. 15370 is support and the next upside level is 15600.
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