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Today was a CONTRA CODE day. The market was all over the place and at end of the day, if you didn't enter the code right you were left starting the game with only 3 lives! How much did you hate when that happened
Looking at the daily this market is respecting the 20MA and starting a new uptrend. The bulls were able to close above 850 today, but barely. Take notice that the market has now worked out the overbought condition and the MACD's have not crossed.
SPX is now bouncing off that black trendline, it was in this mornings 60 Min chart as well but green. Again note the light blue squares when the 20/50 EMA's converge it starts a break out, what could prevent the break out is that there is another wedge forming between the orange down line and the new black trendline.
Notice when the market rallied, around 12 o clock. SPX bounced off that trendline but something else happen at 12' o clock that I warned you about this morning. I said to watch /DX if it breaks 86 it could start a rally. Check out the cross hairs on that chart. The /DX broke 86 during the 12'o clock candle. Starting the market rally.
Look where /DX is on the daily chart. Right at the trendline. If this should break, it should give the market some strength to rally on. But that trendline, had held so far. If /DX rallies it could hurt the market.
Now look at the EUR/USD. I said this morning also watch if it breaks 1.31. Which it did right around 12ish. Take note that the EUR/USD is smacking against 2 EMA's. Currently 5:45 EST its under its 50EMA.
So keep your eye on 85.40 for /DX. I am not making an decision till the morning on where the market might go. I am leaning still bearish. There are still the MEGA Charts to look later.
