Market Outlook

EURUSD weekly chart at blog shows price converging towards resistance directly above, in addition to the long term resistance of the downward sloping trendline. It’s coiling up for a good move and will break out of this congestion area.

 

I’m sticking to my call on Feb 22 that DOW topped @ 12,391 on Feb 18 2011 and thus signals the end of the rally.

 

Recap of a Feb 16 blog post:

Have been asked to give a concise summary of what I see ahead.
When DOW/S&P500 etc. overdue correction commences, I expect:

UP:
US Dollar, various USDXXX currencies, VIX Index

DOWN:
EURUSD, AUDUSD, NZDUSD, Base metals like COPPER, CRUDE OIL,
GOLD/SILVER

 

EURUSD rising wedge on the daily chart is still valid.

 

<span style="color:#0000ff;">I'm sticking with my Feb 22 call that the DOW top on Feb 18 2011 signals the end of the rally.</span>

 

The market is currently in a triangle pattern...waiting for a breakout either to the downside or the upside. It seems like the downside is favored just b/c the volume on the downside has been a lot heavier than each time that we seem to rally. I have no clue what will happen but we'll see in a few days.

 

We are going to get smashed. Thats what's going to happen.

Bye bye birdie!

 

Feb spx low is line in the sand. otherwise next stop is 1273 then 1250. Mutual funds could easily be buying to catch up now and keep the floor in tact.

 

The very overdue Wile E. Coyote correction has arrived and the next leg down has begun.


Hopefully Nine_Ender has woken up now.

 

Gold correction on target, as suggested earlier.