AUD/USD – Breakdown Occurs, Watch Key RRL (4hr chart)
Within hours of our Thursday members commentary, after suggesting the pair would likely break down and look for shorts, the pair collapsed losing the key support at 7350.
This now becomes a critical RRL (role reversal level), so bears should be looking for sell opportunities near here. Downside after last weeks lows, we have the ‘big figure’ at 7000 and then 6300, so quite a ways down.
Only a daily close above 7400 changes the bias ST.
S&P 500 – Sell Trade Setup Profits Heavy From Resistance (4hr chart)
In our last weekly members commentary, we talked about selling around the all time highs at 2130 for a good short play. As you can see from the chart below, this is exactly what happened as the US index hit 2131, then collapsed 47 points since then.
For now, the index formed a large pin bar rejection at key support near 2084. If this level holds, then we should see a quick attack on 2100. If the pin bar lows fail, then 2061 will be next up for the bears, and potentially a move back down to 2042.
