Tuesday 9/1/2015

The daily chart shows price yesterday making a lower high and lower low, closing below the daily pivot. Price today has opened below the daily pivot (and new monthly pivot) and is currently trading down sharply below the MD MA and weekly pivot.

While the volatility has increased in the market, clarity has not.   It is still unclear whether last Monday's low was a multi-week low; the upturn of the blue MD MA is an indication that we have been on the upside of the MW cycle, but thus far there has been no higher multi-day low to confirm this.  With price currently on the downside of the MD cycle, we will see whether price can make a higher MD low over the next day or two.   It remains a possibility that last week's bounce was merely the upside of the MD cycle and we are still searching for the multi-week low which is projected for Wednesday.

The hourly chart shows price over the past three days making 24Hr highs at a similar level while finding support in the area of the new monthly pivot.  Price after the NY close finally broke through the bottom of this topping pattern and is currently trading below the MD MA and weekly pivot.  Price is overdue to see a 24Hr low, and a 24Hr high is projected for noon.  We are also in the timeframe to see a multi-day low made, and as mentioned above it will be interesting to see if price can make a higher multi-day low and confirm last Monday as a MW low.

When price is able to trade above the gold Session MA and turn that average upward, we will know that the 24Hr low has been seen.  If we are still on the downside of the MD cycle, resistance for the next 24Hr high would likely come at the weekly pivot or the white 24Hr MA/blue MD MA confluence are, but could come as high as the daily pivot.  A move above yesterday's high would indicate that we are on the upside of the MD cycle, and by virtue of the higher MD low we would also be on the upside of the MW cycle.