Cleared to fall

A lot of markets have had more than sufficient clearing rallies, and their charts would exhibit a nice proportionality if they were to top right around these levels. I think it’s likely that they meander or float a little higher for the next 2-5 days, but they could just as easily reverse hard at any moment.

The Australian dollar looks like a lot of these charts right now:

Prophet.net

The same wobbly pattern of rolling over can be seen here, in this Russian market ETF:

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The charts of the Canadian and New Zealand dollars, oil, copper and platinum are also remarkably similar to these above.

In the major US indexes like the Dow, seen below, the initial crack from the highs was much more violent, so the same impulses have not brought prices near to the old levels. This is similar to when the post-crash rally was broken in 1930 (2nd chart below).

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The Euro had a decent rally early in the week, but like the British pound after its June highs, its spirit is looking broken and it has fallen out of pace with the pack:

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Of course, if the current urge to speculate persists, I think a short-squeeze in the euro is still very possible.

One last chart here, the VIX (90-day view), which really shows the ebb and flow of fear and greed. Wouldn’t it be pretty if it bottomed right here?

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