Breaking it down
On AGG Daily's charts we put in some more good news. If you recall, Sunday I mentioned I was somewhat encouraged by the spike in volume and bounce off the 75 SMA.
Today we opened above and had a successful bounce off the 50 SMA. Based on this news I'll jump the gun and go with the assumption we've already put in our swing low and are ready to work on the next swing high. I've drawn in a Fibonacci extension projecting the next levels, it will be intersting to see how well they play out.
On AGG's hourly chart I thought I'd point out some important things to consider. We have a large open gap up above, but before we can contend with that, we have to push through the converging 50, 75, & 100 SMA. If we remain bullish then my expectations for tomorrow are to close within the pink circle. If we close above it, I'll be pleasently surprised.
On the S&P 500 daily chart the last 7 candlesticks have closed below the March 666 trendline. You may even notice 4 of those 7 candlesticks touched that same trendline before heading back down.
On the S&P 500 hourly chart I'm watching two channels within the larger channel. While the upper red trendline has been violated several times, we haven't confirmed a close above it, therfore I still see the red channel as the more dominant of the two smaller channels. Confirmation above the red channel or below the green & red channel could be a good clue as to the direction price will take.
Here is the S&P 500 in relation to the Dollar as represented by this chart. There are times when these two trade directly inverse to each other, and times when this relationship is not as strong. For the moment I think we are beginning to show signs of the latter. While the 6/9 MA trend appears to be rising, the slow stochastic is putting in definitive lower lows. The chart is also putting in ever so slightly higher lows from the 3 14.37-14.47 price markers.
If the Gold ETF GLD continues to fall, I can see support from 104-110. I'll post the GLD chart in my account talk thread. That's all I have for today. Best of luck... Jason
