Market folk wisdom has it that volatility often features at the highs and lows of moves. If so, the last couple of sessions strengthen the case for a near-term top in equities and possibly in the Euro too. I was on alert for a change-of-trend in FTSE and DAX and to occur yesterday, but my selling-levels were not triggered. True, the German market did give a sell-signal on its swing-chart, but I did not follow it, occurring as it did in isolation.
The subsequent bounceback in equities and the Euro keeps my intraday focus positive for the moment. Given the leadership coming from the US markets, my instinct is that we can push a bit higher still. This will likely create some negative divergences on the daily charts, and heighten the risk of a more significant pullback before long. In the meantime, I am seeking small longs in FTSE and EURGBP especially, and a short in GBPUSD.
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