August was ugly for the stock market, as the S&P 500 declined around 9%. Wow what a difference a month makes! September is in the books and we all know the headlines…”Best September in 70 years!!!” If you have been a viewer of this blog, you know September was a great month for us as we started the month suggesting to “go long stocks” due to the pattern in Euro/Yen. I suggested a “GAME CHANGING EVENT” was about to take place, due to the chart below. (see post)
Of late we harvested, protecting the gains for the month, as the 500 reached strong resistance. Power of the Pattern helped us capture over 95% of the best September in 70 years…. This morning I wanted to update how the Euro/Yen is doing a month later.
Euro/Yen is attempting a breakout, which should pull stocks higher!!! Have shared in many posts, that we will buy a breakout….stay tuned!!!
On a side note…. Posted this week to “NOT FEAR THE TECHS” due to a low NDX/VXN spread (see post) This low fear spread could help push the NDX past resistance!
Salut! Can I quote piece of the information from your blog if I provide a linkback to your website?
Silver has traded as low as about 21.82 today thus far, so it appears to have fallen back towards support at 21.52 (former resistance). Buying opportunity?
Mark,
don’t see the silver resistance either…as I shared earlier, go to the 30-year fib posting under silver and give it a look…
I am not a silver fan,I am a fan of the pattern. I attempted numerous times to share, via posts, to get ready for what Silver could do.
Another example of the power of certain patterns.
I was asking about silver because cK above seemed to say that silver is CURRENTLY at long-term resistance – I don’t see it, and I think silver has climbed significantly above the resistance (2152) in your most recent post.
Mark S,
you ask about the target on Silver….see Archives, go to silver, 30-year fib resistance.
The next fib target is the 50% level…$26+
Chris
Hi Chris!
Eur/Jpy seems that has broken the resistance, it misses the S&P500
What long-term resistance is there for silver? Chris K’s last post had silver just breaking long-term resistance (=2008 high); SLV, at least, is now well above its 2008 high.
Russia (RSX) nice breakout
The S&P500 and the Euro (and Euro/Yen) rose together form 2004–until the fall of 2007. Then they moved in opposition for most of a year.
By using this as a forward indicator, I think you’d be ipso facto making a macro call that growth is reaccelerating, or is about to.
Chris, how far back in time does the red resistance line extend? Seems like it could be extended back in time farther. Whereas, what is the basis for extending the blue line back in time so far? Wondering which line actually forms longer-term resistance?
Thanks,
cK
let me try that again
S&P500 – rising wedge
VIX – falling wedge
In addition to this, many indices at their cruxes (correct me if I am wrong):
S&P500 – near-term falling wedge/fabonacci resistance/top of 3-yr falling price channel (resistance)
Dollar at long-term support (with 5% bulls)
Silver at long-term resistance
VIX – rising wedge
Other?
Correct down before earnings? That show is a repeat of Q2 this year, and I know how it ends for those short all too well. Earnings will be fine and people will feel undervested in equities/overvested in bonds because they are. IMHO
115 level to observe. I think Eur may correct to Usd and Yen before breakout. May take a while but who knows when Q4 has just started 😉
Watching for breakUP or breakdown from here…. Back around 8/24/10, we also had positive divergence in the currency pair with MACD. We could go MUCH higher from here, or, we’ll break down hard at this point.