Monday, 16 January 2012

SPX and EURUSD not affected by downgrades.....MIB still in triangle.

 Although SPX broke the rising trend channel on Friday the 13th, today the futures remain calm after the S&P downgrades. SPX could be back testing the broken channel, but this behaviour I think is not what most bears were anticipating. It looks like it is gathering more strength to see new highs above 1300. As I said last week, bulls will not give up easily and are ready not to give up without a good fight....I think this market is topping or has already topped.

 EURUSD remains in its downward sloping trend channel for some time now. It could react and retrace up to 1,2820, but for short to give more money in the near future, the pair should stay below 1,2880. Trend favors short positions and remains in short mode.

MIB is covered again as this index is in the spotlight the last weeks. I believe it is the best shorting candidate. Still in a triangle it must break 14700 and 14400 to increase velocity downwards. Italian spreads after correcting near 460, are looking ready to break the 500 level again (488 now).

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