What a sweet rally of Tuesdays lows - markets openeded flat and kept rallying up all day long strongly. The big size TNA positions I bought at 79.7 are up huge already , and I'm holding all at the moment. The euro moved up a little bit as expected and the USD pulled back a bit. To me the euro chart looks extreme bullish and I see FXE move to 144 in the short term target, which is a bit higher from here. If so - markets should follow to the upside.
I remain heavy long SPX at 1322 and my objective target is precicsely 1381.51 which is a 78.6% fibonacci retracement since 2009 bottom and 2007 top. This fits very well with my objective target and I think we should reach this level before a bigger correction comming.
The 30 min and 60 min charts all overbought indicating we should see a short term pullback - the move up yesterday in markets seems similar to the move down in markets - so who knows if we will make an identical setup as some days ago.
SPX broke above the down trend line which is major bullish - and we might pullback in the near term to test that line around 1332.5 on SPX - if we do this , I would expect another rally to 1350 - but who knows, we might also just keep grinding up on low volume like we have seen so many times before over the last 6 months......
So I keep holding my longs and wont bail out - unless we drift a lot lower.
My analysis tells me that this move is the start of a bigger leg up to new highs with target 1381.51.
The euro looks extreme bullish to me at the moment - and I mean that this could pop hard with financials. Financials looks great to run to the upside soon and may help markets moving up a lot more in the near term.
As called in AAPL - it hit trendline and bounced nicely and made a bullish morning start - which means a possible good bottom is in and should run higher. Earnings 20th May....
FXE have a near term target with the inverse HS pattern on 5 day chart to 144-144.5 area - which is in line with a bigger HS pattern on the euro - who knows if we stop there or keep running - time will tell , but thats at least my short term target.
Just some thought on FTSE the English index - might be a big fat inverse HS pattern - I hope not , cause if thats right we may have a major rally to 1420-1450 , but just a thought as it lines really good up.
As the sentiment went heavy bearish over last 2 weeks I think we have enough fuel to rally the markets up a lot near term - and shorts really got trapped yesterday.
Lets see how the near future looks like.
Have a nice day
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