Tuesday, 6 December 2011

Markets topped...are we correcting or start a new decline?

DAX is clearly outside of the upward channel so at least a correction has started. 5800 is a very probable target.
 EURUSD looks weak and the lower highs and lower lows, together with the inability to move and stay above 1,3550 strenghten the bearish view that the rise was a correction. 1,3250 should hold if we want to see higher the pair.
SPX has most probably topped as we mentioned yesterday. A correction could bring the index to 1225. Our view was to sell even if the market is only to make a correction downwards. This is because there is a chance that the expected decline could be impulsive with targets as low as 1080. Updates to follow as markets are dynamic and so must be our analysis. 

Have a nice day!!!!

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