Irrespective of fundamental events, the S&P500 was due a pull back. The index had rallied, essentially unabated, for almost 2 years! Actually, for 22 months to be precise; from Nov 2012 to Sept 2014.

I noted in my w/e analysis how the E/U had formed, surprisingly, a bullish reversal weekly ‘Inverted Hammer’ candle. This was in contrast to the potential daily chart Bear Flag though but, whilst this ‘Flag’ hasn’t been avoided yet, it is looking like the weekly candle is trumping technicals here for the time being. 

I noted over the w/e how the weekly candle of Gold had closed with a bullish reversal ‘Railway Track’ pattern and this pattern, formed at key $1,180 support, suggested continuation.

Dovish Fed minutes have further weakened the USD and this has given many pairs a reprieve from testing recent lows. This may allow for some bounce moves, at a minimum, and so possible target levels will be considered.

The two main Aussie stock market indices are the XAO (All Ordinaries) and the XJO (S&P: ASX 200). The XAO is currently printing its seventh consecutive bearish week and the XJO is printing its sixth out of the last seven.