1. US equity index futures are about to breakout higher. Buy stops need to be in place, these things just take out stops and go higher overnight with European markets. There is a 3rd test of overhead resistance setting up just 5 ES points higher from here.
2. EUR/USD is trying to break out of the falling wedge. A quick move above 20 dsma may be all this thing needs to take on a life of its own, and wipe out 700 pips of stops overhead. Buy stops have to be placed here as well. This is definitely not a sure trade, but could be a bear frying event that lasts weeks. One tricky part is ECB on Thu.
3. Treasuries are in a bear flag on short-term charts, and looking to break down, IF equities move higher, and most importantly, European resolution finalizes. What a huge move down this could be. Gauge this possible short by TNX break out of the wedge, and gap fills @ 22.50 and 24.
4. Gold is looking like it is trying to build on a daily hammer. I am a bit skeptical until break out of the symmetrical triangle. This said, I covered my short and will observe the action. Plenty of room to the upside if breakout occurs.
5. CAD is looking to break out of its triangle as well. This commodity currency has to get back into pretty close correlation with oil, which has been moving higher. BOC upgraded their view of Canadian economy today. This is going to help my view that CAD has to catch up with oil.
Good luck!
Update on Dec 7 @ 8:20 am
DAX did not break out. All risk assets will have to wait for that fact to take place. I will provide the chart with levels to watch shortly.
Update on Dec 7 @ 4:10 pm
Series of frantic news had failed to ignite sustained breakouts. Keep your powder dry until DAX tells us where to go (imho). Treasuries and VIX have spiked in a bid to provide some security for longs. This may mean that traders are still long but are buying protection.
DAX futures is a guide for b/o.
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