May 30 am, FX/S&P/BTC Commentary
Euro-1.1130. The left hand chart is the weekly Euro on top, EurJpy and then $Yen on bottom. I've mentioned many times that since the end of 2016, the Eur and EurJpy charts are almost identical. The Euro below 1.1300 and EurJpy below 124 pegs the larger degree trend as down. Only a move above both respective levels would temporarily negate the bearish trend so until or if that happens, look for selling opportunities on rallies. $Yen is trapped between an overall dollar strong story and risk haven buying of Yen so just look for a broad trading range between 108/107.80 and 114. A break of 114 will be more bullish then a break of 107.80 would be bearish. For today, Euro resistance lies at 1.1157, 1.1165 and then 1.1177. Support comes in at 1.1120 and then 1.1104. We have two days left of the week and the month and so far, both ranges are below their averages--the average monthly range is 278 points and the average weekly is 116 so there is room for expansion on both time frames and I would expect to see a move below 1.1107/00 by tomorrows close.
S&P-2790. Well, the 2780 level was breached and from a purely technical picture, it looks like the market should continue lower to at least 2720 but I have my doubts--the talking heads on TV keep talking about how big the 2780 level is and that the market has broken down. As I've mentioned before, the market has a way of hurting the most amount of participants in the shortest period of time The middle chart is the point and figure. I am still bullish in the bigger picture and view weakness in here as buying opportunities but the market needs to get above 2820 to stabilize and then 2850+ and then the big level at 2900+. Until then, the market is sideways to lower with the first big level of support at 2720.
BTC-8730. The far right chart is the 50x150 point and figure. The market is trying hard to disconnect away from 8250 leaving space from there up to 8500. But, there is big resistance at 8850/8900. Corrections lower from here should be shallow and short lived. A move below 8250 wouldn't be bearish--it would just suggest deeper correction to between 7850 and 7650 before finding a low to rally to new highs from.