monday's mile, page-22

There are bullish convergences on the USD specifically the 14-RSI which is suggesting - cover your USD shorts.

Having said that the USD is trading in a well defined downtrending channel and could fall further as the bullish convergence isn't giving momentum to price action.

Speaking of momentum, I am keeping a very close eye on momentum on SPX 4 hr chart, fails below that blue dotted line & is possibly a good time to short the market. It's still a buy, very overbought, but still a long.

The market at this stage has a tendency of roasting short positions and there is no change to this pattern. I am trying to take SPX shorts for insurance on my longs, I don't think it is necessarily a bad play in the stratosphere as my stops are very tight - turn dates are also only a week away and the XJO hitting my 4650 tgt could be four trading days away.

On the flip side resistance for the SPX in its current channel sits at approx 1065 & the USD support channel sits in the 73 area.

2 charts.

SPX 4 hr with monetum indicator.



USD