11/12/2011

A new critical week for the weekly trends starts Monday Dec 12


EUROPE must still figure out how to restore market confidence on the sovereign debt outlook.  The U.S. believes that the European Union crisis summit made important progress in combating the sovereign-debt crisis but more short-term money is needed to demonstrate to markets a commitment to the euro, a senior Obama administration official said Friday. It remains to be seen whether markets are going to decide that the scale and capacity of Europe's bailout funds are credible – MarketWatch

My view of the markets now

There are only a few critical weeks left to break the weekly uptrend for the DOW and the SP500.  FTSE, DAX and SWED weekly trends have now changed from up to sideways. IBEX, MIB and CAC trends are already down.
The daily trends are all up and so is the important 2 hour trend but this could change already in the beginning of the week December 12.
DOW and SP500 got above my targets for the key reversal for Friday but the margin is not big so maybe the top of the current uptrend was set Thursday for SP500 at 1.271.66 and for DOW at 12.297.9.
The overall technical picture plus the fact that the markets have had the news from Brussels to think through and the Euro and the DAX right now looks close to get a daily downtrend from Monday, tells me that the 2 hour uptrend for the stock indexes could change already on Monday. What happens in Asia will be very important for the European opening.

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