S&P and NASDAQ 100 charts are now firmly in bullish mode. What was resistance will now be support. Both are above 50 day sma and above 61.8% fibo retracement from their year highs to the low we had on 6/16. At the moment the price is above upper bollinger band on daily. It is not sustainable for too long and some selling here is expected by those who are long, as well as aggressive sellers. Bollinger bands tend to keep a lid on things, but nobody cares today, it is a huge risk on day. Support on the pullback could be found at 50/100 day sma laminate. Today's action is impressive and should be considered by all non-believers, who thought that US economy is in a dumpster. On this in the next post...
Gold is looking very weak and came down to Weekly S1 and 100 day sma, which I mentioned as a target a few days ago http://viewonmarkets.blogspot.com/2011/06/gold-rumor-rumor.html
Forex: Euro, Cable, Loonie, and Oz (Australian Dollar) are not sure whether to reward the dollar for strong ISM or punish it as a not-needed safe heaven. Hence no major deviation from y/day closes. Euro did hit 1.4550 overnight and sold off smartly down to daily S1, only to come back up again to where it started the session. If you like trading ranges, this was your day.
Yields on US treasuries are rising and that is a support for the buck against Swissy and Yen. Swissy is especially weak across the board due to Greek solution. It is now 500 pips below its high against Euro, which was reached just 5 days ago. Folks, that is a humongous move!
No comments:
Post a Comment