News flow is positive. Europe did not produce land mines overnight. German court spoke for bailouts, but next round has to be approved through parliament (I thought it was the case already). German industrial production did not disappoint, +4%.
So we have SPX uptrend developing from y/day low. I think we will run into 1190 - 1200 resistance soon. Pullbacks to be bought, imo. They could be quick 20-25 points (per VIX calculation) retraces to short-term moving avg and t/l.
EUR/USD trying to build something resembling a base at 1.40
Shorts will get worried the longer it stays above that level. ECB will let us know what to do tomorrow.
Gold is starting to look toppy. I am not going to short that crazy animal. Just trying to use it for my other trading as an intermarket correlation signal.
Yet another DXY component was shot this morning. CAD will cooperate against the dollar as BOC said no rate hikes any time soon. One by one all currencies will start respecting the king. This said, Ben-helicopter-Bernanke is the only one who can kill DXY rally at FOMC meeting later this month.
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