There hasn’t been a whole lot movement again and it feels to me like the something is brewing. Just what…I’m not sure but momentum is declining across a number of instruments suggesting it might be best to wait for any new momentum breakout. The DJIA closed at a record high but the daily candle here, as well as on the other US stock index majors, is not that encouraging. The US$ closed off its low for the day despite Fed Chair Powell saying “that the Fed would not consider raising interest rates even if inflation exceeds 2% on a temporary basis. He said the central bank would need to see “substantial progress” on its employment and inflation goals before any tapering of the $120 billion per month in asset purchases“. The US$ index remains within the resistance of the daily Cloud so watch for any new breakout.

Data: It could be a quiet day with the CNY and JPY holiday and little news.

Earnings:

DXY daily: price action remains in the daily Cloud and such periods are generally associated with choppy price action across FX so watch for any new breakout here: up or down!

% SPX stocks above the 200 MA: note the pause at the prev High of 92.50. As mentioned yesterday: I don’t know what could trigger a pause or pullback with stocks but the history of this index suggests a test of this level generally results in a pullback. This is no guarantee of course, but, worth noting:

DJIA weekly: the DJIA closed at a record High BUT note the daily candle, not hugely encouraging:

ASX-200 4hr: consolidating on declining momentum so watch for any new b/o: up or down. Keep an open mind:

S&P500 4hr: consolidating near 3,900 on declining momentum so watch for any new b/o: up or down. Keep an open mind:

Gold 4hr: check out the last batch of 4hr candles and the shadows…lots of indecision! Watch $1,850 for any new make or break:

EUR/USD 4hr: watch the monthly 200 EMA for any new make or break:

Most other charts little changed from yesterday.