EURJPY: Short-term traders who shorted this pair on the 11/2 recommendation should have covered 1/2 their position on the 5th or 6th and waited for a 75 to 120-pip rally to resell into. What we got was a 122 pip ABC corrective rally, then a 300-pip drop to the low thus far. Not bad.
ACTION 1: Short-term traders short off the suggested rally sell, use 101.26 stop to close OCO 99.70 buy limit exit, OCO trail your own stop loss down.
ACTION 2: Intermediate term traders use 101.93 stops to close OCO 99.70 buy limit exit. See 240-minute Euro-Yen graph below.
EURUSD: Traders still short 1/2 a position from 11/2, keep using @ 1.2616 target or OCO on you 240-minute trailing stops on basis. Our 240-minute short-term stop is currently at 1.2739 and our 240-minute intermediate stop is currently at 1.2795.
ACTION NOTE: On the weekly charts, the Euro hit support of the CYAN trend system, but the 50% retracement from the July to September rally is 1.2616, so it is possible that an intermediate level tradable buy off this area or at 1.2612-20 area could occur within the next 4-36 hours. Now lets look to the 60-minute trends for reversals and a potential buy on 60 and 240-minute chart pullbacks if trends begin to slope upward. See weekly and daily graphs below.
GBPUSD: Cable is on or slightly below the daily chart's irregularly drawn Andrew Pitchfork lower support line, but the automated trend-line is further below at 1.5780 and raising. Still looks lower over the next week unless we post a low today with a strong reversal off the Andrews Line.
The easy money has likely been made since several other layers of support are awaiting below. Trade short-term, more to the short side for the next session or two until we get a clear break lower or a new pattern buy signal or the 60 or 240-minute trends turn up. See weekly and daily charts below for cable.
USDSGD: The USD-Singapore Dollar pair broke out up from the declining wedge pattern, but has yet to due much of anything.
ACTION: Use the 4-day high and low to bracket this market for both BUY and SELL breakouts. Use the opposite side as a STOP and REVERSE should you enter either trade. The targets are shown on the chart (see below).
S&P500: Thus far, the sell-off in the S&P has looked orderly with the accelerations being more at the beginning of each new down leg rather than at the middle of a leg down, as would likely be the case if this was already in a new BEAR market. So unless the market accelerates lower within the next 48 hours, and since some long-term cycles are still supportive until around March 2013, we will still prepare for a potential rally in this area due to the support in the weekly charts.
While we do not have a daily buy signal yet, be ready to again buy pullbacks should the 60-240 minute trends turn up. On the Weekly chart, the SPOOS has hit its pattern sell signal target, therefore it needs to break through immediately or it will be subject to a rally. The next session or two will clear up the picture. See weekly and daily charts below.
ND: The NASDAQ market sold off more, but is not on the daily Andrews Median Line support. Again, the advice is similar to the SP500 comments above. See weekly chart below.
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