AUDUSD after last week's bearish engulfing candle in severely overbought conditions we now have a small shooting star candle after the retest of last week's high, leaving a potential double top sell signal.
Emini S&P JUNE we wrote: We are now severely overbought on the daily chart & short term charts. Although I think we could drop 100 points there is no sell signal so I cannot recommend a short. If we do head lower (as I think we will), look for 4585/80... A perfect call as we reverse to 4575.
Nasdaq June beat resistance at 14400/500 for a buy signal targeting 14650/680 then 14820/870 & as far as my ultimate target & strong resistance at 15100/15200. Shorts here worked perfectly we reverse from 15268.
Update daily by 05:00 GMT
AUDUSD shorts at 7500/7530 re-target 7450/45 then 7405/7395. A low for the day certainly possible but longs are now more risky after the potential sell signal. Bulls need a break above 7555 to kill the negative signal from the bearish candles. A break higher targets 7630/40.
Emini S&P JUNE reversed from Tuesday's high as predicted to hit the first target of 4585/80, with a low for the day half way to support at 4565/55. Further losses meet very strong support at 4520/10. Longs need stops below 4495. We could have a high for the 2 week recovery in place now. A bounce this morning obviously meets resistance at 4625/30. However a break above 4640 opens the door to 4660/70 & a break above here is the next buy signal.
Nasdaq JUNE tests strong resistance at 15100/15200. Shorts need stops above 15350. A break higher is a buy signal targeting 15500/520, perhaps as far as 15650. Our shorts target first support at 14950/900. A bounce from here is possible. However longs may be too risky. If we continue lower look for 14850 then 14750/700.
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