There is a current theme moving throughout the markets right now. We are seeing some impressive moves up in the $DXY and down in the $EURUSD and yet we are not seeing any substantial evidence to suggest that the institutions are behind these moves. Have a look at the analysis in the report and you’ll discover that the banks seem to be on the sidelines mostly when it comes to the major currencies. Now with respect to #Gold and #Oil we are seeing them increase their long positions and with respect to Gold they are getting to a certain size with longs that usually trigger a massive sell off.
So what do we make of all this?
There is a lot going on at the moment and the headlines are definitely getting traders to make moves in the markets and when you have so many participants it can definitely move markets in unpredictable ways.
Heading into the new week we have to keep our eyes on the markets, specifically the $SPY to see if the banks will take price down or start building momentum back upwards. Price can go either way at this moment. We detailed this in a session we did this past week titled “How the Banks move price in the Markets” it’s a great session and will detail to you what we need to watch for this week. One of the supply zones we had mapped out in the session was contacted and price dropped from it with an incredible accuracy.
Most traders I see on social media are under the impression that the markets are on their way down and we have uncovered a lot of evidence to suggest a move lower is indeed coming BUT I do have to also recognize that the BIAS is still bullish because of higher timeframe forces that are currently in play which is buying from the institutions. We have covered this several times and we know that unless this buying zone is removed supply forces will not be in play.
There were supply forces in play on the lower timeframes but those forces where short to mid-term and they have since run out of steam. You can see how we located that exact supply force and how it exploded price lower on the video above.
This week I will watch the $SPY as it starts reacting to some mid-term supply on the daily chart and see if the banks will use it to drop price, if so I will initiate some short trades on stocks on the watchlist that we expect more downside on. See Watchlist for more information on that!
Until next time, hope you have a great week!