A.M. Look 6/9/16

Aussie is typically a risk indicator.
What do we know about the matrix zones?

1) they act as targets and exit levels for direction traveled to the level.
2) they are sell before you buy levels coming up to a # set as with the Aussie and Spu’s.

160609_063632_CQG_Integrated_Client_Chart_IAUDUSD_-_Australia_(Dollar)_Index_Daily

​Bottom line…the equity indices along with some key instruments were overextended
and were in need of some back and fill to relieve rsi’s. It just so happened that once again it was at matching matrix levels.

Whether this can turn into something more than a few S&P points remains to be seen.
All you can do is use the levels for risk management and see what develops.

I.E….I spoke yesterday with one of my private wealth managers  sitting on a lot of cash. The main point was that I’d rather buy Risk once we closed over the Spu level not into it, preferring to wait to see if we can get a pullback.

With Equity/Bond spread sitting on its 200DMA for the third time in 5 trading sessions
let the day unfold into the NYSE opening to determine the next flow.

Spu’s will need to close under 2100 to start making the longer term bulls uncomfortable, electing more selling.

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