Heard On The Street

ANNOUNCEMENTS:

Moving forward, the weekly edition of Heard on the Street will focus on the monthly, weekly and daily perspectives, while my M-W-F edition of The Market Pulse will focus on the daily, 240 minute and lower time frame perspectives. In doing so, the weekly recap will cover more markets and detailed discussion regarding the larger trend in each market.

IS THE RISK TRADE STILL ON?

The last high that the market made was almost one month ago and up until Wednesday of last week, the market had lost 71.25 points. The wave pattern remains open for interpretation but favors a sideways to down bias. Learn what to expect by watching this weeks video edition of Heard On the Street where I'll cover the Emini S&P, Copper and the EUR-USD.

Chart of the Day: $DX_F #USD

The USD appears to be working an expanded flat correction for w.ii circle. A the time of this post, price has reached a strong level of support... so look for a bounce.

However, common fib ratios call for further decline where w.c circle of w.ii circle = 1.618 w.a circle at 74.185 which agrees with the .618 retracement of w.i circle at 74.13. Also note that additional fib support exists at 74.265 which is the .618 retracement of the move from 72.86 - 76.54.

On additional fib relationship that I identified is near the .5 retracement of w.i circle. That level is where w.c circle = .618 w.a circle past w.a circle or 74.4.

In conclusion, the area surrounding 74.13 - 74.4 offers a logical termination point of w.ii circle and offers traders an area of consideration as w.iii circle advances to the upside. Any significant decline below 74.13 would warn that the a larger decline may be unfolding and that the expanded flat interpretation was incorrect.

Best of Trading

Heard on The Street: $ES_F $DX_F $EUR_USD #Crb Index #Commodities #FX

Three Pressing Questions that YOU Might Be Asking

• Commodities had a terrible week. Is the trend over or is the Market just offering another lower entry point?

• Has the long awaited turn in the USD arrived or was the past weeks price action just another fake out? 

• Will "Sell In May and Go Away Theory" lead to a substantial correction?

Watch this video edition of Heard On The Street for the answers you seek and gain insight into where each market may be headed.

Chart of the Day: EUR-USD

The EUR-USD has completed a trend sequence that began on 1/10/11... w.(B). Price action over the early part of May appears to unfolded in an expanding diagonal. This would explain the swift decline as price action of waves that follows a diagonal quickly retraces back to the origin of where the pattern began or 1.4157.

Dropping down to the intraday chart level, the structure of the expanding diagonal can be clearly seen.  The decline from 1.4936 counts well as an impulsive wave where w.(iii) is complete and w.(iv) appears to be unfolding in a triangle or possibly an expanded flat that adheres to the rules of alternation due to the fact that w.(ii) was a sharp corrective move. For today, look sideways or up to a maximum of 1.4617 for w.(iv). Thereafter another round of selling should draw prices to the 1.4157 target to complete w.i circle.

I hope you found this information helpful and...

Best of Trading

Heard On The Street

The wave pattern in the e-mini S&P's is still not resolved but the bearish view appears to be in trouble as time and price relationships must quickly be met or the bulls remain in control of  this market.

View my bullish and bearish wave counts as well as an update on the EURO-USD in this weeks video edition of Heard On The Street.


Best of Trading