Markets did rally nicely after yesterdays little morning pullback. If you look at TNA or small caps - WOW we just confirmed the bullish engulfing pattern nicely with a big fat green close where we closed right at trendline resistance.
Overall believe the euro is about to head higher and with that - markets should rally further up imho.
It really looks like some kind of bullflag pattern we have been trading in since early May and lets see if we wont breakout above resistance and move higher in the near term.
Today we have holiday and I expect the bulls to take us further up - so time will tell.
I still believe the euro has bottomed and a major rally should be underway either Friday or Monday per the charts , so lets see if the euro cant do a nice rally and with this expect the markets to move up.
Overall still think the small caps can break above the trendline today , just a little move higher in the small caps and we will break the trendline going from the highs , so the downtrend would official be out and a uptrend is in. I still remain heavy long TNA 78.3 and is now 83.66 , already up huge , but holding all as I believe we go higher.
Financials may be a huge buying opportunity soon as we are right around some nice support and they are all very depressed - remember to buy when things are depressed and out of favour.
Follow me on twitter - I called the silver rally and oil rally, and looking for strong commodities rally with metal and mining stocks + steel stocks going in the near term.
Take in mind too that the bearish sentiment has never been this high since August 2010.... and guess what happeneded after August 2010 ? You remember the non stop rally for a multi month high ? Yeah that was it - not betting on a big rally , but at least some more upside before...
Have a nice day
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