It looks like the long overdue correction in major indices may be starting with a number of markets breaking trend support or channel support, with double and triple tops completing and with RSIs falling under 50 providing downward confirmation. Meanwhile the US Dollar Index breaking under 100.00 has ignited rallies in gold, JPY, GBP and EUR.
Asia Pacific Indices
Australia 200 is testing its 50-day average near 5,720 after falling back from 5,780. RSI breaking under 50 indicates momentum turning downward. With a triple top in place, a break of 5,700 could signal the start of a new downswing with next potential support near 5,675 then 5,585.
Japan 225 is breaking down today, diving from near 19,450 down toward 19,080 before bouncing back toward 19,155. RSI falling under 50 signals momentum turning downward with next potential support near 19,000 then 18,800.
Hong Kong 50 has a bearish reversal underway having traded up to 24,700 then finishing down on the day. Worse, the new high was not confirmed by the RSI, suggesting the index may be peaking. Next support in a pullback possible near 24,300 then 24,000.
North American and European Indices
US 30 is breaking down today falling from near 20,900 toward 20,700 taking out 20,785 channel support along the way. RSI diving under 50 confirms momentum turning downward. Next potential support near 20,500 then 20,430 then 50-day average.
US SPX 500 is starting to break down, taking out 2,352 channel support to complete a double top and falling toward 2,348. RSI falling under 50 signals momentum turning downward. Next potential support appears near 2,327 the 50-day average.
US NDAQ 100 has turned decisively downward with a bearish engulfing candle and the break of an uptrend line signalling a downturn. RSI falling toward 50 confirms a change in direction underway. Having broken 5,395 and trading near 5,340 next support appears near 5,300 then the 50-day average near 5,240.
UK 100 failed to hold 7,400 and is starting a correction falling back toward 7,355 with next potential support near 7,320 an uptrend line then the 50-day average near 7,275. RSI falling toward 50 indicates a correction deepening.
Germany 30 is breaking down today, falling under 12,000 and completing a bearish rising wedge pattern. RSI falling toward 50 indicates confirmation of a downturn pending. Trading between 11,890 and 11,940, next potential support appears near 11,805 the 50-day average.
Gold is taking off again, rallying up off $1,230 Fibonacci support through $1,242 and on toward $1,248 with next potential resistance near $1,250 then $1,256 both Fibonacci levels. RSI above 50 and rising confirms upward momentum increasing.
Crude Oil WTI’s last rally failed at a lower high near $48.85 and the price has resumed its downtrend, diving back toward $47.50. RSI oversold but confirms downward pressure. Next potential test near $46.85 a recent low and uptrend support.
US Dollar Index is breaking down today, taking out 100.00 and falling toward 99.60. RSI breaking under 50 confirms the downturn in momentum. Next potential support appears near 99.25 then 98.90 a 62% retracement of the post-election rally.
EURUSD is breaking out today with a bullish engulfing candle and a rally up off $1.0720 indicating renewed interest. Rallying toward $1.0800 next potential resistance appears at a Fibonacci cluster in the $1.0820 to $1.0840 area. Rising RSI confirms increasing upward momentum.
GBPUSD continues to climb, rallying up off of $1.2360 toward the $1.2450 to $1.2480 zone with next potential resistance near $1.2500 then $1.2580. RSI above 50 and rising confirms upward momentum accelerating.
NZDUSD ran into resistance near $0.7090 and has been knocked back toward $0.7040. It continues to hold above $0.7000 and encouraging sign but it still needs to retake 50 on the RSI to indicate this as a new upswing rather than just a trading bounce.
AUDUSD has encountered resistance near $0.7750 and appears to be rolling over, falling back toward $0.7700 while the RSI suggests upward momentum may be peaking for now. Initial support possible near $0.7655 then the 50-day average near $0.7605.
USDSGD confirmed support in place near $1.3945 a Fibonacci level and has bounced back toward $1.4000 retesting former support as new resistance. Next upside test near $1.4040 with next downside test near $1.3900.
USDJPY has resumed its downtrend, falling from near 113.00 down through 112.35 and on into the 111.70 to 111.90 zone with next potential support near 111.60 then 111.25. RSI under 50 and falling confirms downward pressure increasing.
GBPJPY is having a tug of war rallying up toward 140.00 on GBP strength, then falling back into the 139.40 to 139.90 area on JPY strength. RSI still under 50 indicates its falling channel between declining 50 and 200-day averages remains intact.
EURJPY is bouncing around 121.00 trading between 120.80 and 121.20 with next support near 120.60 then 120.00 and next potential resistance near 121.80 then 122.00.
USDCAD is starting to turn back downward sliding from near $1.3350 toward $1.3310 but it needs to break $1.3300 and 50 on the RSI to confirm a downturn. Next support possible near $1.3280 then a moving average cluster near $1.3190.