The Shanghai Exchange managed to pull out of a rather steep fall during Tuesday’s session as can be seen on the candlestick formation on the daily chart.
The index closed with a 2.6% loss, and the most salient technical feature on the chart is the manner in which the 20-day EMA looks set to cross below the 50-day EMA at what is likely to be the possible top to a bearish pullback channel.
The S&P 500 registered a rather poignant candlestick at the end of yesterday’s session which I would almost classify as a gravestone doji. Since that has a rather melodramatic tone to it, let’s just say that it is not one of the most bullish candlesticks in the repertoire.
UUP, the exchange traded fund which takes a bullish view on the US dollar index, is displaying a lot of positive divergences and there is clear evidence of accumulation at least on this ETF.
The short-term sell signal on the hourly charts for the EUR/USD, discussed here yesterday, could have worked out well if short positions had been covered at the $1.4260 level. In today’s session I would be monitoring the $1.4330 level for establishing a new position on the short side.
Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market.
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