Indices are showing more signs of rolling over and distribution with the US SPX 500 completing a descending triangle with a breakdown. Other major indices are also looking technically vulnerable. Currency markets have been holding on to the big gains and breakouts made late yesterday confirming that a significant shift in money flow is underway. CAD has been particularly strong not just pausing but building on gains.
North American and European Indices
US 30 keeps drifting downward, dropping into the 20,530 to 20,600 range having broken its 50-day average near 20,665. RSI under 50 and falling confirms downward pressure increasing. Next potential support near 20,380 then 20,300 a 23% retracement of the post-election advance.
US SPX 500 is breaking down today, falling under a trend support line near 2,345 to resolve a symmetrical triangle to the downside. RSI under 50 and trending lower confirms downward momentum accelerating. Next potential support near 2,335 then 2,313 a 23% retracement of the previous uptrend.
US NDAQ 100 is still rolling over, dropping from 5,400 toward 5,360 and a test of its 50-day average. RSI has already broken under 50 to signal a downturn with index confirmation pending. Next potential support appears near 5,300 then 5,265 a 23% retracement of the post-election advance.
UK 100 continues to form a head and shoulders top, falling away from shoulder resistance near 7,400 back into the 7,300 to 7,350 area around its 50-day average. Neckline support in place near 7,260.
Germany 30 is still sliding with 12,165 a former support level, emerging as new lower resistance while the index declines toward 12,115. The index remains in an uptrend above its 50-day average near the 12,000 round number and its 50-day average. RSI testing 50 where a break would signal a downturn in momentum. Next potential support near 11,860 a recent low.