Now that the three main US indicies have rallied massively throughout the last few months,it comes as no urprise that the ice is getting thinner !
The four ETF that i have under the radar screen are crucial as they will determine the direction of the broader US market . They are getting close to their support levels ! The tinted red areas on the 4 charts show the "margin of safety" ! If DBC(commodities),USO(Oil),FXE(Euro) and GLD(Gold) break their respective support lines (which they will do simultanously), then the markets are in for new major downleg. If the support lines do hold, then there could be a final push higher before the big plunge ! In both cases there will be a be a big plunge .. it's only a question of when ! The support lines will be breached !
I've added on the charts the following symbols if you wish to play the bounce, or the breakdown !
GLD: DZZ(Double short GLD); DGP (Double long GLD)
USO : DTO(Double short USO); DXO(Double long USO)
FXE: EUO(Double short FXE); ULE(Double long FXE)
DBC: CMD(Double short DBC); UCD(Double long DBC)