Ftse changed the playbook a little But the end result was still the same We got back to 6990 in the early part of the night Spent most of the session looking like it was going to dump & then recover by the end of the night (which was the original plan at a much lower level without the ftse interference)
While most people believe we are near top, technically xjo should be trading between the 6960 & 7160 channel but for some reason we're sticking to the bottom of that channel for now At least the ftse is closer to the top of their bear chart than we are
As I said the other day, the xjo chart bosses have a lot of space to work with. They can keep it suppressed until conditions improve or do what the ftse is doing & move back up before dumping again if conditions don't improve True xjo bear chart top is now at 7350 (no we are not going anywhere near there this week) On the 2nd Jan it becomes 7250 which is definitely attainable A breach of that officially breaks the 2022 bear market
If we remain in the 6760 & 6960 channel, we reach top of bear chart by Jan If we can move up a leg to the 6960 & 7160 channel, we reach it by the start of december We failed the first attempt to get back into the higher channel & somehow stuck in between for now We'll see how it goes next week with the US behemoth slowly showing signs of recovery
US mega caps are starting to turn now Microsoft is the first of those that sold off to break above their hrly chart (of those I'm tracking) Those reversals will be swift once they gain traction US can do 5% days easily Most of the mega caps have upgraded guidance heading into 2023 They will all be higher than where they are now
Unfortunately xjo can't do that so easily We usually climb with extended grinding Forcing retail to buy back in at higher prices as markets grind higher with the occasional pullback (slow & tedious process) But the CBA pumping back above 108 could easily help bulls next week
Dxy had a brilliant dump I still need that to reach & break below 1.08 for markets to keep pumping & moving up channels Otherwise it's going to be a boring grind (back to the old bull chart trading conditions)
US vix made a new low The rsi on the daily chart is the lowest it's been since 2016 Which coincidentally is the same year the dxy also had a pivot after climbing to ridiculous levels in a short time frame in 2014/15 Dxy only needs to stabilise & stop climbing for markets to attempt a recovery
Either way, after such a rough year for bulls, xjo sitting at 7000 isn't too bad 600 points away from ath 600 points above the lows
(20min delay)