1. DXY false breakout. DXY has a failed run at the major high of 97.00, which means the big buyer has taken profit.
This is likely to be the start of a bearish rotation in the Dollar.

1. Break down from a massive M shape top formation. The trade back into the body of M is a shorting opportunity.
If it is able to trade above 5285, the risk reward for the shorts are really good.


2. Head and shoulder's top formation in DAX. 12000 is the key level to watch for the bears.


3. A false break of the yearly high is a sign of weakness. After the running the stops and testing the break out point, it is possible for the Dollar to make another high making a big MM like crown formation. But a high probability scenario is for it to test the major fib retracement level before coming down hard.

Nasdaq had some serious difficulty to stand back above 7000.
The base case is that the nasdaq has topped out and the market is making a long term bearish rotation.
The risk reward is great on the short side when NQ trades back above 7200.

The road map forward is to wait for some bullish reaction after the mid-term and look for sell opportunities there.
If the market reaction would be bearish after the mid-term, then the US equity might be able to pop higher after the initial
compression.

1. If ES would broke the 2780 key level decisvely, the next target in the minds of the bulls would be 2820.


2. The strength in the dollar index has indeed faded as we have expected. The whipsaw during the mid-term elections merely adds confusion to the uninformed -- it might be bullish story. No, the big hands have decided to sell the dollar even before the mid-term, the event is merely an excuse to slow down the execution to take some caution. Our base case is still to see a weaker dollar.

1. Dollar has achieved its minimum downside target.

A reversal pattern can be spotted in the 15 min time frame after touching a H4 bullish breaker. Once again, the setup is much clearer in the DXY chart than in the euro chart.


2. A bullish leg this morning faded. It is very usual that early movers have a disadvantage that their stakes are usually challenged and play by the late comers. Since NQ has tested the 7120 key level, it is likely that the early bulls targets are achieved and left the building already. It is difficult to buy the fib retracement of that leg. Instead, the NY trader might be looking at the triple bottom below 7020 as the liquidity pool as their target zone to gun for at the NY open.

shrekchenbin 

1. If ES would broke the 2780 key level decisvely, the next target in the minds of the bulls would be 2820.

Russell has traded in a nice tight range since Nov.
The break out to the upside during the Globex session would have to be confirmed by the cash session.
Today's price action is crucial.
Make or break for the Russell. It has failed the break and break back in the week long trading range, then it is going to mark the top of the of this swing.

shrekchenbin 

1. Dollar has achieved its minimum downside target.

Contracting triangle with a bullish tilt in NQ.
With for the best.

Target 7120, target 2 7180

shrekchenbin 

Contracting triangle with a bullish tilt in NQ. With for the best.

A wedge break to the down side.

Yesterday's bullish leg was impressive, but it does not mean that we should automatically ready to buy the story of bullish resumption. If we take a look at yesterday's price action, the structure is quite poor, which means once the market turns around, there is very few levels can provide support.
Moreover, as of now, the NQ is trading below yesterday's VAH at 7195. According to the value area trading rule, if the VAH/VAL failed to propel price away, then the whole value area tend to me traded through. Hence we should bear in mind the possibility that we would see a bearish open and price crumble from there as the weak buyers scramble to get out.