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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