With dreadful economic data coming out from the world's biggest economy, markets managed to pull a gain yeserday. Still not sure whether economic data is to get better or this is Q.E. (quantitative easing) expectations. Time will tell.
Meanwhile, all the bulls, please switch to the first gear as temporary bottom is in place, what is more important stop levels are known. Lets see what is going to work out of this rally. I do remain a bear over the long term, but feels like this one still has a potential. One thing I learned is that I never should underestimate weak dollar... Currencies led the rally and looks like commodities are catching up:
Oil has put a daily bullish reversal I was looking for. And we're back into the channel (yet move upwards still is a corrective one in the overall bear market):
Copper has found some support at 200d moving average as expected. Overall, visually, copper consolidations normally are continuation patterns:
Dollar index is being squeezed between 11d and 50d moving averages, so something has to give up, and if the trend of the last days continues we will see a move towards 200d:
1040 area in S&P looks to be a good support:
As I said stop loss levels are know, lets see what is going to work out of this one.
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