This morning we have several extreme conditions on the higher timeframes. The Nasdaq 180 minute ADX is at 80.06 and we are seeing diverging volume as price is making new highs. Although there is another 35 points to go for the Weekly chart to reach the ATR, we may see a pullback to the ATR on the 180 minute chart (2682.00). On Gold sellers stepped up and took prices lower. On the Weekly chart, Gold has actually been in a trading range since October 2011 and is now heading downward to the support area of 1560. On the 180 minute we have had a very flat magenta dot appear and price has stalled with buyers being very weak and unable to take price upwards. I would expect more downward movement. Then on the Euro, Swiss Franc, and British Pound, we have the 180 and 720 minute charts both at extremes on the ADX and RSI. On all three of the currencies (EC, SF, and BP), we have strong divergence on the highs. A test for sellers is needed. And on the Yen, we are overextended on the 1440 with divergence coming in indicating a test for buyers is needed. Additionally, the THD ADX is at 65 on both the 180 and 720.
If these extreme conditions result in an ADX magenta peak, a downtrend would develop on the lower timeframes. However, you have to wait for the downtrend to be established before entering.
On the Euro and Swiss France, we also may have a Wyckoff Upthrust as part of the pattern is appearing now. We have to wait for price to close below the supply line before taking a short.