Financial Markets Summary:
- EURUSD, XAUUSD-GOLD, GBPUSD and SP500 are in their corrective moves as anticipated. See potential targets on these 240-minute and daily charts (charts provided at the end of the report).
- Thus far, these markets are likely just in corrections, not yet new major downtrends. However, the EURUSD and the S&P500's Super-Trend (purple mid-line) have turn down on the daily charts, one and two days respectively after their highs.
- The cyan/magenta colored stop and reverse system signal is currently short on the 240-minute EURUSD, GOLD, GBPUSD and SP500 charts.
- Of these four markets, the SP500 could have topped at the Andrew Median resistance line on 09-18-2012. See the market report on September 18th for more details on potential cycle turning point dates for the SP500.
Interestingly enough, the EUR/USD Super-Trend (purple mid-line) turned down on the daily charts on 09/18/12, one day after the high. We also have a system short trade on the daily charts from that day. Even though the EURO has already reached its minimum pullback criteria, it still could sell off to 1.2825, which is the 50% level of the the prior up leg (a likely Wave 3 up move).
Occasionally, when the Super-Trend turns down just one or two bars from the high (or up from near the exact low), the market can make a more significant correction, or it can even indicate a major trend change. Conversely, the 240-minute purple Super-Trend mid-line is still sloping up on the EURUSD, with that pair just now touching the 240-minute Super-Trend support level. Be extra prudent around these areas until both trends are in the same direction.
ACTION: Use 60 & 240-minute trends to guide your short-term trades for this correction. Targets lower are 1.2900 and 1.2825. We suggest that you do NOT try to short the market, should it get to 1.2825 area. Also use caution if short around 1.29, which could provide a reversal up point as well.
Please leave your comments below and +1 / likes if you enjoyed this market report.