BarroMetrics Views: A Review
I have been locked out of my office since Friday afternoon when there was an overflow on the 9th floor that flooded the lifts. So far, no repairs yet. Only in HK. Of course, I could take the stairs; but I’ll give a miss to walking up and down to my 21st floor.
The lift situation is bit like the markets…..
In the US indices…..
On Friday. the S&P closed above 2058.98 Maximum Extension, but I would not rate the bar as a bullish conviction bar. At time of writing, today’s price action is no more convincing. We have a gap that is either a breakaway or exhaustion gap; at this stage, I’d rate it as a breakaway because of QE (Europe continued jawboning and China joined the party yesterday). But time will tell. (Figure 1)
In the currencies………
For the majors and minors, except for the USDJPY, we see a congestion market that started around end Sept, early October. The AUDUSD is a good illustration of what I mean. (Figure 2)
A suggestion of a bottom. There is a possible Spring if we see a bullish conviction. Ideally, I’d like to see a weekly bullish conviction close above 1236 followed by a test of the 1132 low on low volume. Notice that the volume has increased on this run without a corresponding commensurate increase in range – classic ‘Wykoffian’ automatic reaction price action following a possible selling climax. (Figure 3)
Hopefully, we’ll see a resolution of the various possibilities by month’s end.
FIGURE 1 S&P
FIGURE 2 AUDUSD
FIGURE 3 Gold