Tuesday, 13 December 2011

Markets slide again....

Eurusd continues to look weak and after breaking its support line will probably test soon 1,3140 with a view under 1,30. European leaders fail to provide a cure to the disease......the more time it takes for them to solve the problem.....the more the disease spreads.
SPX topped around 1265 as we were expecting last week and made a new low yesterday in the area of 1227. Overlapping waves could still be a couple of 1-2, but the index hasn't still reached even 50% retracement. It still has room to fall but shorts should be covered above 1266.
Dax revisited the 50% retracement and looks like it is going to bounce back up again. Breaking the 61,8 % retracement decisively would be bad for bulls. The form of the decline still looks corrective in europe.

Concluding I would suggest short covering if afraid but not going long. We live in dangerous times and I wouldn't be surprised to wake one morning in a defaulted country. Politicians have lost the battle and there is noone left to fight.

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