Saturday, 11 February 2012


S&P has finally started showing some early signs of significant weakness after a long time and a rally of 55 points since the last imporant correction. 1300 area is very important. We need to know if S&P is correcting the move from 1300 or the entire move from the october lows. Either way a top has probably formed near 1360 which is also Prechters stop. European debt crisis will surely affect US markets but Mondays session will provide much more usefull info regarding what to expect. Shorts are favoured with a stop at recent highs. Bulls could enter at 61.8% retracement around 1320 with the lows as a stop.

 EURUSD looks like its taking a break. Consolidating between 1.3025 and 1.33 might still have power to see 1.3450-1.37. Friday was a day with high volatility for this pair and a day to test both resistances and supports.

 Taking a closer look in the EURUSD we see it will test on Monday the support line. It is positioned now at the 61.8% retracement of the move from 1.3025 area to 1.3320 recent highs. This coincides with the support line drawn. If broken then we could visit 1.2950 first and maybe 1.2870. The form of the decline will provide usefull info regarding to what we should expect.

One of our favorite picks from the Athens Stock exchange, ALPHA BANK, still moves correctively. If the move from the lows is impulsive then the correction is either finished or has to give a new low near 1.25. If the up move is just wave A then we could take advantage of wave C up too. 

Potential targets will depend on wether we are in an impulsive wave or not. Volume can clearly be seen as rising during the upward move. If things regarding Greek debt go positively for greek banks then I believe we could see 100% performance in this stock during the first half of the year. For more stocks like this one and more info on how to trade in Greek stocks please contact me. And don't forget to follow on Twitter @alexanderYf

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