Look to Short the Rallies
01/21/2015 7:00 am EST
Christopher Terry, of iMarketsLive.com, shares a video in which he charts the S&P eMini futures and a major currency pair that has been in a downtrend for many months and he highlights the key levels to watch for the next possible swing highs and lows and for resistance.
The S&P 500 eMini futures have been filling out a trading range and holding prior structural lows and this leads many traders to believe the market can try higher. Support 1980/1990 and upside resistance 2050/2064 are now test levels to watch on the hourly charts.
The EUR/USD has been in a steady downtrend, and after last week's break from the Swiss franc, the EUR/USD continues to drive to multi-year lows. Since the market is in a very strong downtrend, it may be best for traders to express patience and allow rallies into prior structure areas to set the stage for shorts, guard against the buying of a falling knife.
By Christopher Terry, Contributor, iMarketsLive.com