Stocks to Fall Hard Next Week; Euro Decline Resumes Toward 1.2288

Prior to yesterday's rally, the S&P cash index changed a whopping 11 points since my last post.  Hence the reason I have not posted anything.  The market appears to be finishing up a final C wave of Minor wave 2 as evident from the 5 wave rally leading into my projected Minor wave 2 above.  Since it's a holiday week we're in, volume will probably remain light and there may be an upward bias until next week.  But any rallying should be capped at the wave ((2)) high of 1422.38.  The outlook since my last post remains the same though, the market is setting up for a major top and big decline as long as 1422.38 in the cash index is not exceeded.  This presents a good risk/reward opportunity for the bears.

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The euro appears to have topped again and is heading to a new low beneath 1.2288.  I put a hasty wave count on the daily chart above.  The exact count and degrees of waves eludes me, but what is clear with basic technical and fundamental analysis is that the euro is doomed for the foreseeable future.  Stops can be placed at any of the nearest swing highs.  The larger trend is down, the euro will eventually head to parity with the US dollar, if not further, so constantly looking for opportunities to short is wise in my opinion.

I'll be back with another post when something interesting happens, or if the outlook changes from the above stated projections.  Have a happy 4th Americans!!

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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.