Typical Friday brings about floating around in the markets. Apparently Asia intervened to buy dollars due to export concerns of their own goods. This caused the EUR/USD to drop but it didn't effect the stock market. Governments tend to intervene at the end of trends, so again this proves that the US dollar decline is ending and a major bottom and rally will occur. Once it does, the stock market will top and reverse.
The count I placed yesterday still holds. After the correction is complete, it should charge to new highs and target the 1100-1120 S&P area before considering a top is in place. If the market meanders higher from current levels it either means an ending diagonal is forming, where if it makes it above 1080 it may mark the top right there, but if it doesn't get above 1080 then it will correct down and then rally hard in a week or so toward 1100-1120.
There are 3 key things I'm watching for a stock market top that need to occur:
1) signs that the US dollar has bottomed (EUR/USD topped)
2) 1080 in the S&P is broken
3) 1020 in the S&P is broken.
Until then, we wait.
No comments:
Post a Comment