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US equity market may have hit a top in my opinion.
Dow Jones index closed right at the critical resistance level last week on weekly chart. It also ends its seven days concecutive rally today.
Equally important, S&P index is trading towards the upper end of the rising channel. The resistance level is between 1320-1330.
More importantly, USD rallied against all majors in the past couple of days. Especially that AUD/USD stopped getting bid in Asian sessions and steadily traded in a downward trend. Typical risk aversion mode in the capital market.
With that being said, I believe that US equity may have topped out in the short term. I am looking for a retracement of 4-5%. |
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