“If you can’t measure it, you probably can’t manage it“ - Ed Seykota

Ten days ago we mentioned that odds favor a correction and that the key levels to watch for signs of swing reversal are 2788 and 2800. The SPX tried unsuccessfully to break above 2788 and the awaited correction followed. We also mentioned that as long as 2740 holds, the bullish case remains strong.

Now we can draw a new 1 x 1 angle from today’s low which, along with the CIT Cloud, should provide us with directional guidance for the rest of the week.

Key levels to watch remain 2700 – 2740 and 2788 – 2800:

(Click on image to enlarge)

The projected trading range for next week for EURUSD is 1.15 – 1.175, for GBPUSD is 1.313 – 1.3446, for USDCHF is 0.985 – 1.005, for USDJPY is 109.4 – 111.5, for USDCAD is 1.295 – 1.33, for AUDUSD is 0.74 – 0.755.