Forex Pairs:
The 4 hour charts are starting to build some short-dollar near-term signals. The daily charts however are still lacking Average Trading Range increases (speculative interest), and are showing a distinct lack of volume (institutional market participation). As such any moves that are going to hold this week need to come on increasing levels on both. If that happens we may see the major pairs really test 84.00 support on the dollar index, so long as equity markets play their part by holding 830 on the S&P.

LFB Member S&P Chart Detail
S&P Futures are still trading well above the 822 wave A) support, and below 870 wave A/1 critical resistance. Prices are trapped in this area, which indicates that the red wave B) correction may not be completed yet, as we  first thought.  Wave B) is a corrective wave which means there are many patterns that may be developing here, besides the simple zig-zag which is the most common. We will be looking for a possible triangle structure which may lead to lower prices once the pattern completes. However, traders who are monitoring the current wave count should be also watching 870 resistance which needs to hold for the current wave count.


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