In the past week the U.S. dollar moved higher across the board,
especially on Friday when it was driven by a very bearish Wall Street,
as stocks reached new lows just a few hours before the close.
Since the 21st of October the dollar index has moved
higher with a gain of around 160 points. The structure of this move
looks like an impulse, which indicates a new trend; in our case long.
A similar, but inverse pattern is shown on the S&P futures four
hour chart, which also signals that may be a time for a temporary
change of a trend.
S&P futures 4h Elliott Wave view (posted on 30th of Oct.)
The 4 Hour S&P futures chart shows the potential of the break,
ahead of time, that our subscribers received just before the technical
storm broke. The call was for a test of the 1030 support zone, and
shows the progression of the move, and what can be learned to replicate
the same set-up.
It was showing the structure of an extended red wave III, at that
time. The black wave IV) was trading on top, around the1055-1060 area,
before the prices fell into a lower wave V). Currently, the market is
trading at 1040 after already hitting the 1030 lows.
S&P futures 4h Elliott Wave view
The smartest traders may have already booked their profits and are
now waiting on a corrective pull-back; of wave IV in our case, before
stocks may get sold again, and conversely, the dollar bought.
This week of trade is power-packed in regard to red flag economic
releases, and as such we fully understand that fundamentals will drive
market direction, with technical reads such as these revealing the
price points to hit along the way. No trader should be out there alone
in times like these, why not let TheLFB do the research for you. The
U.K. and the U.S. dominate a period that has four interest rate
decisions as well as the Non-farm payroll.
