Santa Claus rally over but indices still bullish, forex trading short on Silver XAG/USD [Video]

It looks like the Santa Claus Rally has ended with a 26-December selloff.

But, is that it?

If we look at the 4 major US indices we can see the daily charts still in bull runs.

Also, a standard method of determining a bull market is the 200-day simple moving average.

Price action occurring above the 200-day SMA is bullish.

We can also see the 50-day moving average acting as a dynamic line of support as price action has touched and risen several times.

These two moving averages also act as a long-term reversal indicator.

When the 50-day SMA passes below the 200, we call this a Death Cross and you can see why.

The opposite event is called a Golden Cross and we can see that this reversal is where we are now.

If you trade silver you will be familiar with chart patterns.

We can see several double tops and bottoms and head and shoulder patterns.

We just broke through the neckline of one and the exit point was indicated by this oversold stochastic oscillator.

If we consider that we are in a bear run, watch for confirmation of this downturn and be aware of a key level at $29.

If you are waiting, as many are, for a bit of strength in JPY, you may have to wait a little longer.

With USDJPY at 158 and GBPJPY approaching 200 again, we will have to wait for almost the end of January for the next BoJ Interest Rate Decision.

We will see you at the end of the week and please enjoy a fun and safe Happy New Year!

That’s all for now.

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