Technical Picture - Higher Highs for Broader Markets

The markets opened the new week/month on a modestly favorable note. Positive news/data from overseas and better than expected construction spending and ISM kept buyers busy. Despite the choppy session, the S&P and NYSE notched new highs, unconfirmed on the NASDAQ. The rally was broad based with energy/commodities leading the way on a weaker $USD.
Speaking of the $USD, it breached support on a closing basis, however, the lower low is unconfirmed by the MACD and RSI. Same goes for the $CAD which gapped higher. I suspect this may be a head fake. If so the commodity rally will stall. Watching this one closely.


Two trades from the WL, CNQ gapped up on weak $USD, but broke the ORH way too soon as measured by distance between price and the rising 5 period EMA. Wait for a better entry.

Price retested the ORH as support, held the 5 ema on closing basis, and eventually carved out a base at $64.00.

V formed a base at $67.00. The base BO would lead to a clear path back up Thursday's break down base. That part of the trade went very smoothly, unfortunately, it wasn't finished.

I was sure that $69.00 would be the top so I shorted it at $69.00. V proved too strong and the trade had to be scratched.