Tuesday, 13 December 2011

Quick US update....

Everyone is waiting for the FED to step up....markets are off their highs....I believe the report from the FED may give the markets a final upward push to even a new high, but in the end I see bears prevailing. Eurusd steep decline is a bad omen and the correlation with spx will force the index down rather than the pair upwards.
All in all, the two charts show the trend lines that should hold for short term upward movement to remain. Yesterdays lows are important supports that must hold. I don't believe they are going to hold since I favor the scenario as I mentioned in previous posts, that a medium to long term top was forming around 1260. Market form still need to unfold and regain downward velocity in order for the bearish scenario to have more chances than my alternative (1300 spx).

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