Just a quick update on my March 31 post titled “Euro vs. Dollar – Head and Shoulders Almost Complete.” Today the FXE gapped above the trendline, opening the door for further dollar weakness. Cheers!
Just a quick update to note today’s gap up open, new high for the move, then reversal to close lower, engulfing the prior day’s body, all on higher volume. This is called distribution+. One day of distribution is usually nothing to get too concerned about unless it comes during the first few days of a rally, however multiple days over a short period of time (a few weeks) is cause for concern and cash raising. This chart shows five distribution days over the past two months and two over the past one week (see red circles marked above volume bars). That’s distribution in a rising market, which is interesting. Other points of note are: