After the Christmas weekend, it’s Tuesday night, December 26, 2017. Here are a few notes about tonight’s Top-Down Day Trader market view, looking at long-term trends as evaluated from daily charts:
Stock Market – the overall markets continue to be moving upward in general. There was a spike in anticipation of the tax cuts, Friday the 15th and Monday the 18th, and since then, the S&P 500 stocks have been going straight sideways for the last 7 sessions. The S&P is trading is a very narrow range. Over that same period, the NASDAQ has pulled back a small bit. There’s nothing happening from a TDDT perspective in stocks.
Crude Oil – Monday the 26th was a big day for crude. It pushed up through its recent channel high, and stayed above it in today’s trading. Looks for support of the February contract at about 59.0.
Gold and Silver – both gold and silver have been moving up for the last couple weeks, and are now solidly above their daily 30-EMA lines. Both have showed 2 strong green candles in a row. Long trades in the precious metals are good prospects, if prices retreats and bounces off a mid-term support line. Beware of recent resistance levels in late November on continuous charts.
- EUR/USD – Trend lines are up, but this pair continues the general sideways channel that it’s been running since early August. The last 5 days it’s been living in a tight sideways channel, after a spike a week ago probably related to the tax package.
- USD/JPY – similar to the EUR/USD, this pair has been moving sideways over about the last 2 months. It’s very much range-bound, no clear trade.
- GBP/USD – very flat for several weeks, in a narrowing, tradable channel. Short-term plays off channel bottoms and tops look like good trades.
- AUD/USD – trending upward over the last couple weeks, this pair has a long way to go until it hits resistance. Look for short-term pullbacks into support areas, then entries on upturns could be great trades.
- USD/CAD – as with other pairs, the USD/CAD is trading sideways on daily charts. However, it’s very near support in a 2-month channel, so long plays could work well.
Disclaimer: the above are not trade recommendations, and are noted for informational purposes only. We do not offer personal financial advice, nor do we recommend buying or selling any specific securities. The content of TopDownDayTrader is offered free of charge. Thanks for reading and Happy Trading!