Guess which two markets I am watching right now?
Those two markets areeee….
US Equities and Dollars (Forex)!
I will explain why I am watching these two markets right now shortly.
First lets start with US Equities market with my favorite S&P 500.
S&P 500 0.65% undergo build up structure of distribution by big players.
Time has come to test a lot of long term uptrend trend-line and seem like the momentum to break those long term uptrend finally here.
To maintain the momentum to go down to test 2400, 2430 shouldn’t be breach. Daily 20MA will now be retest and always be supported by short position players.
Another market that interest me is Dollars itself.
Today I zoom out and analyse dollar index monthly chart and I saw this,
We can see that dollar index 0.21% is retesting its lower channel. On top of that the price is fully retrace back to 2016 Nov low during US election.
To setup dollar to hit new high in next 6-9 months, price should respecting lower channel and uptrend , we can expect Dollar to create a new high in next 6 months. July is the key month to watch. Once break 95 area, price expected to roll down to 92-93 to test support.
With fundamentally US Fed interest on rate hike, at least one more and possible two more hike, dollar has an attractive setup to buy. Big players seem like double dump their position before picking up cheaply and ride another super-uptrend.
What do you think and what market are you currently watching now? Feel free to comment below and share.
Till then, happy investing and trading my friends!