US markets closed in the black fourth session in a row and S&P reached its all-time high. Leading sectors appeared to be Banks and Technology. It’s hard for investors to buy companies that are traded higher, so all the money flows to the lowest companies in the market.
Asian markets followed US markets and closed in the green area. Nikkei was doing better and closed in the black for the sixth day in a row, but is still low compared to the beginning of the year.
European markets opened in the red. On Monday Draghi had announced in his speech that ECB should be ready to confront in case of deflation, that’s why expectations of lower rate became stronger.
USD/JPY on a daily chart is still in consolidation, which continues since February 2014. This means that support and resistance levels are strong enough. After this range is broken, a strong reaction by investors can be expected to be broken down. At the medium 4 hour interval this pair reached downtrend line and 200 EMA, sellers should hold position of 102.000 if they want to remain in control of the price. Medium-term target of this pair is about 101.400 — level set by buyers after the false breakthrough. The next key target is 108.000 — the bottom of May 21.
After the 1.09000 neckline penetration we received some great downtrend. Now this pair is in its moving average and matches daily chart trend. This situation gives confidence in continuation of a trend. My first target was in 1.08500-600 support line which buyers managed to defend. After this level penetration and consolidation above it I expect further downtrend. My new target is 1.08133.
The Gold was in a wide channel which was lending and preparing for its resolution. After the strong breakdown that has taken place yesterday there is some point to trade for a continuation if price will break yesterday’s bottom $1.262. But I’m looking forward the sliding scenario and I’m going to measure it and search for an opportunity to sell close to Fibonacci level ($1.268 - ¼, $1.273 - ⅓). The lower the price will be — the higher the chances are for a continuous downtrend.
After its quarterly report that appeared to be better than expected, Apple is doing great despite the absence of innovations which are the main catalyzer of its growth. The company also announced of investors’ dividends raise and it has supported quotes. For those who trade, intraday AAPL stocks were the best choice and I operated this trend all the time. There was a big gap up and continuation, then the basic upper level was built, key resistance levels were broken and then a good continuation. Market growth and strong position of technological sector confirmed the idea of buying. There were few tactical downtrends in consolidation, but you should not expect more when trading against such a strong trend. Now the price jumped off key moving averages and it’s hard to buy on this level. One of my rules is not to chase price.