Thursday, September 17, 2009

Waiting; September 17, 2009

Nothing new to report other than yesterday brought strong buying demand to the stock market that signals bullish momentum in the near future. This will be negated if we get a sharp reversal today or tomorrow though. The market is rallying quite healthy, no divergences or laggers. I've said many times that the EUR/USD has been following the stock market and when it tops, so should everything else. The divergence between the EUR/USD and the GBP/USD holds true still, and the EUR/USD poked through a slight new high from December's completely what's most likely a flat correction. It could extend higher of course, but minimum expectations have been satisfied and I'm on alert for signs of a reversal, i.e. five waves down, sharp selloff, etc.

When the EUR/USD tops and reverses, it will signal that precious metals and equities have probably topped as well.

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