01/12/2011

Central banks unexpected dollar news sent the markets into a tremendous short covering rally

SP500 closed Wednesday on high at 1.245.55 and the 2 hr chart trend is still very strongly up for all indexes. The daily trends have now turned up. The news were planned to take place on the last day of November resulting in unusual high  monthly closes which however does not effect this big downtrend trend since no close got over the falling 8 MA:s. The weekly downtrends are so far not in danger. After close next Friday I will examine if the big trends have been damaged technically.

Just now it is just to wait and see how strong this trend is and how high it will go.

The Euro closed the month at 1.3445 and hereby stopped the monthly 5 wave trend to develop on downside. However the 8 months MA now at 1.3974 will continue to fall at least in to April. This bear market will be very difficult to change.


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