I think we are going to be in for a nasty week, If you take a look at the hourly chart for DJI and SPX you will find that MACD is forming a down trend (still). Also, stochastic are about to cross which could bring a strong momentum shift in the market. RSI is also approaching but not reaching overbought levels. Not only that but as you can see below we are approaching 1358 which is a resistance level. On friday, we actually touched 1358 than retracted a bit closing at 1357.
What is making things uncertain for me is EUR/USD...
As you can see on the chart below, stochastic is in oversold levels. We are also sitting right above the 20MA on the hourly chart which is acting as support. On the 5-min chart we are currently sitting EXACTLY on the 50MA (should be interesting to see how things play out overnight). MACD is pointing lower, so I am assuming we should see the Euro Vs. the USD sitting in oversold levels for quite a bit.
Not sure if any of you are subscribed to Barrons, but in this weeks issue on page 53 you can see the CBOE Put/Call Ratio. The ratio is approaching the 30:100 level which is a bearish signal. Also, the put/call ratio for the SPX 100 is approaching 70:100 which is very close to the bearish 75:100.
What are you guys looking at in this murky market?
EDIT** EUR/USD just broke the 50MA I mentioned earlier on the 5 min chart and fell quite quickly, meaning tomorrow should be a DOWN day.