Members login
S&P 500 Nears Top Confirmation as US Dollar Advance Gains Traction
Written by article default Thursday, 17 November 2011 07:55
THE TAKEAWAY – The S&P 500 is on the verge of confirming a major top below the 1300 figure as prices approach critical support while the US Dollar advance gathers steam.
S&P 500 – Unchanged from yesterday: “Prices continue to carve out a bearish Descending Triangle chart pattern below the 1300 figure, with support marked by the 23.6% Fibonacci extension at 1225.71. A break below this boundary initially exposes the 38.2% Fib at 1184.14, although the Triangle’s implied measured target is roughly at 1158.52. Alternatively, a break Triangle resistance exposes 1292.90, the October 27 high.”
CRUDE OIL – Prices invalidated a bearish Dark Cloud Cover candlestick pattern with a break above resistance at $99.86, the 61.8% Fibonacci retracement, hinting a move lower is ahead. The bulls now target the 76.4% level at $105.57. The $99.86 level as been recast as near-term support.
GOLD – Prices completed a bearish Evening Star candlestick formation near the $1800.00 figure and broke through rising channel support, exposing the 38.2% Fibonacci retracement level at $1746.26. Continued selling from here targets the 50% Fib at $1695.05. The channel bottom, now at $1780.64, has been recast as near-term resistance.
US DOLLAR – Unchanged from yesterday: “Prices continue to carve out a bullish inverse Head and Shoulders chart formation, with confirmation on a break through the setup’s neckline roughly defined in the 9789-9870 region pointing to a major near-term bottom in place. Validation of the setup implies a measured target near 10169.”
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Follow me on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to This e-mail address is being protected from spambots. You need JavaScript enabled to view it
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.