The S&P 500 may have put in an abandoned baby top pattern, a powerful reversal signal after a move higher.. the candles are not perfect, and the pattern is very rare, so we could look at the two spinning tops on Tuesday and Wednesday as another bearish reversal signal confirmed by today's sharp move lower. The weekly candle currently looks like a shooting star rejection.
I'm thinking about getting long EJ for a scalp.. but I'd like to play the daily SMA. 133.8 or so seems good for a 30 pip quick one. You'd have additional daily SMA support with a 30 pip stop.
UJ broke support and caused a little broad USD weakness.. I'm feeling good about this little Euro pop (the most interesting thing to happen all night) reversing for a nice little scalp.
I think it's going to be a really slow march higher into the mid 1.50s.. I think my strategy for the next few weeks will be to short around 1.502 - 1.505 with a larger than average stop and hold for 100 pips short each time.. I will buy in the 1.47s - 1.45s and hold to 1.50 as well
I will not buy in the 1.49s or upper 1.48s due to the possibility of a catastrophic loss using a big stop. I think a catastrophic loss shorting in the lower 1.50s is far less likely over the coming weeks.
below 1.445 would be bad, very bad, but anything above that I would view as an opportunity to buy.. another drop down into the 1.46s would be like an early Christmas gift.