MCM Newsletter – Outlook for Week 18 Apr – 22 Apr

Executive Summary:
Main Trend (weekly): neutral
Intermediate Trend (daily): up
Short-Term Trend (480&288min): neutral

Details:
The weekly cycles are still oscillating. The mcm-MA turned green and, although that invalidated the 2 consecutive LRE (lower risk entries) for shorts which triggered a while back, the reaction to the expected resistance level will be key going forward.

Weekly Cycles

Weekly Cycles

On the daily cycles, the up impulses are relentless. The market had only brief pull-backs which never triggered a bullish retrace (BR). The directionality tool on YM finally turned down, but quickly bounced again. Although that does point to the fact that the last pull-back was more important than the previous ones and put a dent in the bullish up move, there is still no sign of a top. Once the market finally tops, the normal expectation is for a more significant pull-back to happen which would trigger a BR and then a bounce to an END which would signal the unwind of the impulse.

Daily Cycles

Daily Cycles

The 480 and 288min cycles are still oscillating. The change in the oscillating nature which we were pointing last week seems to have been only temporary, the market managing to make a higher high now which triggered also a new resistance level (at 2075). The normal expectation now is for the market to come back down until it finds a new support level. As already mentioned several times, once the market breaks into an impulse on these cycles that will be a strong message about the intermediate term direction.

288&480min Cycles

288&480min Cycles

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