SGT Chart Book
The U$ index saw a rally last week as the markets followed the debt ceiling negotiations ahead of a 1st June deadline. This will probably end up being another political event, with a solution found just before D-Day.
After rejection at the weekly chart resistance zone mentioned last week, we have seen a sell off to close in on the 61.8% retracement of the recent rally.
The theme of the week has been a consolidation after breaking recent yearly lows and chart support. This level should now contain any rallies before a further wave down.
Daily charts are showing trend line support and resistance zones. Traders should watch these levels to provide further clues to longer term direction.
Equity markets have gyrated in reaction to the news coming out of the US debt ceiling negotiations.
The NASDAQ put in a good performance with the tech heavy index making new highs for this up move.
After bringing your attention to the potential 5-wave rally and bearish divergences, we saw price action consistent with this theme. Further short-term consolidation with a downward bias can be expected.
Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.
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