Overnight Bounce Stalling?

There was a big spike higher in the futures that took the S&P 500 into upside targets (1189). This occurred with the daily chart for the S&P 500 (ES Z0) entering a timing zone. We have also entered a zone on the hourly chart (ES Z0-60min). You move to the lower timeframes to anticipate turns on the longer-term charts. So far, these daily timing zones have only led to small pullbacks or short pauses in the advance, but the rallies in risky assets are getting extended and some are starting to falter.



The collapsing Dollar is causing risky assets to go up. The Euro (6E Z0) has been a primary beneficiary. The Euro is stuck at the 1.40 resistance level. The overnight rally in the stalled and now the Euro is in pullback mode. Here are support levels. These need to hold, or they open up the possibility of a pretty nasty decline on the daily chart (levels posted on Friday). The Euro is a key indicator for how risky assets move.



Gold (YG Z0-D) bounced hard overnight and has held daily support in the $1,300 range. It needs to clear the $1,360 level to turn the trend back up and then the 127% extension is $1,407. I included the short term support levels below.