Monday's short covering rally was of the same strength and length as the Employment rally a week ago and closed above the daily 8 MA. So far today not very much has happened while the 2 hr trend lines are still on their way up. It is also a natural day of rest and the markets are now waiting for FED news Wednesday at 20.00 where I expect next move to come. The important 8 MA is sideways to up today but for tomorrow it will start falling again for the next 3 days unless a powerful rally takes SP500 for instance above 804. I do not believe that is possible since most of the short positions now have been taken out. The daily trends are still down and in Asia as well.
The bonds weekly trends are down but there is still a bit left before a test of the lows. The EURO is still up strongly but the daily chart might have difficulties to take the daily top to the left on that chart. We are also in the last trading week for the year since Dec 23 - 31 always use to be very little turn over but be prepared for Jan 2, then everyone is back and their plans are ready.
The bonds weekly trends are down but there is still a bit left before a test of the lows. The EURO is still up strongly but the daily chart might have difficulties to take the daily top to the left on that chart. We are also in the last trading week for the year since Dec 23 - 31 always use to be very little turn over but be prepared for Jan 2, then everyone is back and their plans are ready.
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