Asian Open – Fed cuts rates to zero and possible mirror image foldback NYSE Index

here’s last weeks post on the Asian Open and the YEN. level worked pretty well and we rallied pretty much all week. the USD vs YEN should stay below the 108.46 level and/or 109.866. if (the big if) this sell signal works then it ‘should’ put pressure on the equities:

even w/ the FED cutting rates take note of the key (intraday sell signal) on the bonds … intraday/15 minute chart. we have higher targets but this is the ‘first’ sell signal from the lows back on 3/13.

here’s the potential mirror image foldback I’m monitoring on the NYSE Index. Pretty symmetrical pattern. note the key trend line … that’s a BIG DEAL.

gameplan for the long bond structure …

CLIFF NOTES: if you look at the chart below, you will see an inverse head and shoulders pattern that had it’s genesis almost a year go – 07/2013.  Just recently (the past 3 trading days) we have broken from this neckline ….price on the bonds should start up.  Here’s the gameplan — expect the 137 28 level to hold as resistance.  (It’s a butterfly sell pattern) and then price should come down to the neckline and here is where we really see the battle between the bulls and bears.  All things being equal, the standard gameplan is to trade the return to the neckline and therefore go LONG in/around the 134-135 level.  However, if the rates are really going to rise, then this neckline will be defeated and  we’ll go thru the black line to the downside.  This is the gameplan …

 

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