Start of the week charts

The action after Ben's speech caused volatility and false breakouts in almost all indices. S&P's false breakout is shown with the grey line and the blue ellipse area. It was a bullish breakout but things changed and heavy selling came following his speech which also caused the red support to break. It was possible to catch the probable bounce level with a channel shot which I showed with orange channel. Ideally, the bounce should take us to the red broken support and then back to the orange channel's lower band. But since this recent move caused a lot of gaps to be filled, we may even break into the red support again. Until this orange channel is broken downwards I do not expect further weakness.

Russell's red channel support indicated the bounce level very clearly and that's exactly where it bounced. The false bullish breakout is shown again with the blue ellipse. As I was saying last week, RUT is the most bullish looking index to the eye at the moment.

The ETF VIXS I posted here gave the first alarm before FED meeting. The bullish breakout advanced last week and we have a clear breakout now. We may retrace and hit the red resistance again which would give a better entry point for my bearish fellas. The profit potential as you can see from the chart is enormous.

British pound broke down the red rising channel as a response to Ben's speech. There was a follow through as prices continued their decline but I'm skeptical about the recent USD strength. There is a green steep declining channel in the picture but if that breaks up we may see the 1.57-1.58 area once again. Otherwise, this looks very bearish and shorts are in favour as long as the green channel is in charge.

I have been watching the agricultural commodities for a while, particularly coffee, sugar, and cotton. All of them including the DBA index which I posted here look extremely depressed. For the ones who do not trade these instruments via futures or CFDs, I suggest you buy small amounts of ETFs following these commodities. I think there is a new bullish wave around the corner as I read a lot of hedge funds are exiting agriculturals all together due to heavy losses in the last two years.

I would like to mention sugar first which shows that the price action is at a very important junction here. The multiyear green channel's lower band was hit either last week or will be hit next week which makes it an ideal entry point with tight stop loss control. The red resistance is very strong and once broken it may unleash much higher prices from here.

Cotton's 2 year red declining channel is broken but being retested as the prices were right at the broken support last Friday. The blue consolidation channel may be a resistance to higher prices for a while but I expect it to break upwards ultimately. Hope it helps.