I did a piece last Tuesday on TipTV were I looked back at some the instruments that I’d covered a month before and how they’d fared in that time.
I covered EURUSD and USDJPY and I was happy with how my initial analysis had played (and I’m still happy with it nearly a week on.)
USDJPY Daily chart (having broken out nicely and also looking like its setting up a nice bull flag following its break out from the range)
Where I was less convinced was in the S&P500. And by the end of the week I was less convinced. Whilst it had moved up from my October piece, it had not done so with any great conviction (in my eyes anyway).
Here’s a quick screen-shot of all four major US indices (S&P. Dow, NASDAQ & Russell) on the daily chart from the end of the week.
I did say that there might be a dip before it launches itself north, but those moves across all four indices last week did not fill me with great confidence. Are we dipping before moving north, or are we sliding south again?
And then we come to the horrific events of Friday evening in Paris. A cowardly and callous attack on our Western way of life. (That will be the subject of a separate blog post.) What impact will that have on these US Indices? Was something said or agreed upon at the G20 meeting to support markets after such an event? (As I write this the DAX gap this morning has already filled a 150+ point gap). Will that help these markets or provide a final nail in the coffin? It’s going to be an interesting day and week.
Take care and trade well.