Here is a look at the /ES on a 60min view. You can see that we broke down below the upward channel and now forming a downward channel from it. We are currently trading near the top of the channel leaving room to move down to the 1310 level.
Here's the SPX Chart Analysis.
Here is a look at the SPX
or S&P 500.
We've been posting this chart a lot lately to continue to show what we've been seeing. Last week we pointed out that we were looking for a break to a lower-low confirm the lower-high that had been made and to confirm the current downtrend. We did in fact make a lower-low when we pierced below the 1329 level. After the low was created we made our move back to the top of the channel. On Thursday we smacked resistance and began the sell off which continued on Friday. The market still has room for a continued move lower taking it back down to the 1313 price level. We are interested to see if the 50 day moving average can add support in the middle of this channel. A move above 1359 would be a breakout of the channel and a break to a new higher-high.
Here's the AUD/USD Chart Analysis.
The AUD/USD has been a strong correlation to the equities market so we will continue to watch it for signs of direction. We see the same downward movement in this currency pair as we do in the SPX. We are noticing some minor resistance at 1.071 and major resistance at 1.073. The positive side here is the strong support at 1.051 which will be assisted by the 50 day moving average (orange line).
Here's the rest of the Weekly Forecast.