SPX Range Bound! But For How Long?Brian Kahn - Friday, October 19th, 2012
Lots of charts and inter-market relationships. But first, a weekly fundamental wrap up and the fundamental preview for next week.
This week we had a better than expected retail sales and a worse then expected weekly claims. Manufacturing indexes were mixed and earnings were, well, mixed. Next week brings a slew of Central Banks talking:
Additionally, we have durable goods, claims and advance GDP. Looking even further ahead, we have a monster data week beginning the 29th with unemployment wrapping it up. So you throw in earnings reports and I am guessing that the SPX will finally break out of this 2 month long, very tight range (although not so tight if you are a trader (and an options trader at that)):
My feeling is if earnings come in week and economic data comes in weak, the support line should be broken and we have a reasonable shot at seeing 1400. But then again, it is the age of QE to infinity and beyond!!!......
And here are the inter-market relationships (and you can see my post earlier this week for the "if SPX rolls over at resistance, will the USD strengthen commentary"):
A double fall line trade n the GBP/USD as it came close to the trendline. Again, line up lows in the USD and highs in the SPY. Next up, the EUR/USD:
That looks to be a double top? We will find out! And finally, the AUD/USD, so weak, then it tried to strengthen, but again, Fibonacci's help to guide to overbought/oversold areas:
Past performance is not indicative of future results
All of this topping action in currencies paired against the USD correlates with the SPX topping out!
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