• Clear picture from U.S stocks. New all time highs for Nasdaq, Dow and S&P500 also look ready to make fresh all time highs soon. Some upside mean reversion in European stocks. Emerging markets still look extremely bearish in the short-term.
  • U.S dollar returning back to previous highs on the daily. Another breakout north is probable. Nice looking trade setups in the AUDUSD and USDJPY discussed below. USDJPY was up 2 sigma last week.
  • Shorts in precious metals seems to be the play in commodities at the moment. Gold and Silver are discussed below.


Market: S&P500

Reason for observation: New highs on the daily

Short-term bias: Bullish

Long-term bias: Bullish

All signs look to be pointing at new all time highs for the S&P500. Buyers are back in control in the short-term.


Market: FTSE

Reason for observation: Weekly bull flag setup

Short-term bias: Bullish

Long-term bias: Bullish

Picture perfect weekly bull flag the clear catalyst for the UK stocks. Wait for momentum to roll firmly back to the upside before placing any long trades.


Market: AUDUSD

Reason for observation: Daily bear flag setup

Short-term bias: Bearish

Long-term bias: Bearish

AUDUSD quickly returning to the lower range of the consolidation, this is bearish. Shorts valid on a breakdown.


Market: USDJPY

Reason for observation: Breakout and new highs on daily chart

Short-term bias: Bullish

Long-term bias: Neutral

We pointed out this textbook breakout setup a few reports back, the sharp move above the level is validation. Maybe this recent bullish action will bring USDJPY back to life, price action has been relatively quiet for some time.


Market: Gold

Reason for observation: Daily bear flag trigger

Short-term bias: Bearish

Long-term bias: Neutral

Bearish positions warranted on this recent breakdown. No signs of any short-term trend reversal as of yet.


Market: Silver

Reason for observation: Breakdown setup

Short-term bias: Bearish

Long-term bias: Neutral

Silver looking heavy here. Lower highs into a potential support zone is extremely bearish.