Today, we'll be focusing on the indices! First up is the SP500, where we have a very interesting, yet often underestimated technical structure, which is a correction equality pattern. The current bullish movement is exactly the same as the one from the end of October and the beginning of November. The SP500 reached the ultra important resistance, and it looks like a great place for a bearish comeback. Even if it doesn't happen here, it could happen a bit higher, on the gray resistance, which has been a legitimate support for the last three months. Our view remains bearish.
DAX is still in the descending channel formation and is slowly approaching the upper line of this formation. Along with the dynamic resistance, we also have a horizontal one on the psychological boundary at 11,000 points, which seems like a great place to sell. Well, if the price even makes it there.
Yes, today's analysis is dedicated to the indices, but we can't forget out the currencies, so now turn our attention to the dollar index! DXY started the week out with a strong breakout of the horizontal support at 96.2. This breakout activates the sell signal here. Now, we have a small bullish correction, but it seems that this is normal price action movement, as the price tests the broken support as the closest resistance. The sell signal is on.