Wednesday, 21 December 2011

SPX finally moves 1300 coming?

SPX has finally broken the downward overlapping move that ended between 50% and 61% retracement. Another impulsive move was made from near 1200 to 1240 and futures now are making fresh highs. 1250 was our initial target and we stick to it. Most people due to the expected holiday rally and the big rally yesterday are even more sure of reaching 1300. I hope we get there but I'm not that sure it will happen. Nevertheless if spx is starting another move up, it will surely correct the first wave that started from 1202 and give another chance to go long for bulls. One of the things that make me skeptical about a potential rally to 1300 is eurusd. Things in europe haven't changed a bit although auctions in Spain have sent the spreads downwards. Eurusd as mentioned before had the potential to go to 1,3150-1,32. Now at 1,3110 may still has room for a new high. I don't see more upward potential.

1 comment:

  1. EURUSD target has been reached with todays high of almost 1,32. Our view was bearish at those levels and the pair followed a sharp decline to 1,31. It remains to be seen if it will hold this support or it has already started a new leg dowN below 1,2950. SPX futures also reversed sharply but I would like to see the US markets open and then decide if the top is in.