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A Quick Quad-Market Assessment of the Selloff Thursday

A Quick Quad-Market Assessment of the Selloff Thursday

Courtesy of Corey Rosenbloom at Afraid to Trade

With all major markets falling sharply on Thursday, I though it would be a good idea to take a quick “fly-by” glance at the daily charts of the S&P 500, Gold, Crude Oil and then the US Dollar Index.

Let’s start with the S&P 500:

A quick glance shows the “Cradle” sell signal was accurate, as I highlighted in yesterday’s post:

Overhead Cradle Resistance in the S&P 500.

What now?  The 20 and 50 day EMAs have officially crossed ‘bearishly,’ and the S&P 500 cracked under the critical 1,070 and 1,080 support zone.

A quick glance shows that the next level of likely support rests with the October and November 2009 lows in the 1,020 and 1,030 region.

Next, Gold Daily:

Gold had another $50 point loss today, similar to that of December 4th (ironic one-month anniversary).

Gold also broke the critical $1,070 support zone I highlighted in a prior post:

Critical Line in the Sand for GLD/Gold“  (sellers broke the critical level)

It would appear that odds favor a completion of the Bear Flag (blue line) in Gold down to the $1,020 level (ironically, similarly to the S&P 500 index level).  Again, that is a quick chart assessment.

Crude Oil:

The $72.00 level in Crude Oil represents a critical level not yet (officially) broken, though should sellers push price down two more dollars, then the essential support line at $70.00 would come into play.

A break under $70.00 would target the $65.00 level – September’s swing low.

Crude Oil – like the S&P 500 – also formed a Cradle Sell Signal on the short-lived rally back to the $77.00 area (notice the doji that formed at that level).

The US Dollar Index:

Finally, the US Dollar Index looks solidly to be on trajectory to complete its daily bull flag, as also mentioned in:

Bull Flag Formation in the US Dollar Index

and

Dollar Index Update:  A Bump in the Road to Complete the Bull Flag?

The $80.50/$81.00 level reflects both the Bull Flag completion target and a prior level of overhead resistance from July.

Continue watching these levels across these important markets.

Corey Rosenbloom, CMT
Afraid to Trade.com

To stay up to day regularly with opportunities and targets/structure for these markets, including the 10-Year Notes, become a member of the Weekly Intermarket Report service, which is a 20+ PDF document published each week which provides regular commentary on the Monthly, Weekly, and Daily charts of these markets.

 


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