January close comments

The overall big picture with the daily and 2 hr trends are down to sideways while the monthly and weekly trends are up but lost momentum during January.The long weekly charts - 96 weeks - has completed five waves on upside and closed below the tops. This indicates to me that the correction has started and it seems that they will as usual all go together. China and Japan looks the same way. This correction will be global and it has so far started in a slow way. The daily trends have reached resistance area and a sideways or up trend seems likely right now during the coming week. The most important diagrams to follow are the daily with the details from the 2 hr charts. It is difficult to give a clear picture of what will happen Monday.

The majority of the company results has been better than expected and the big fundamental situation with China cooling off and the US printing less money with stronger economic numbers than expected. The indexes might trade on daily news for a while and continue to be choppy with big swings in the daily charts. I do not see any big changes in the fundamental situation right now but any bad news could easily force a break on downside. The 10 year bonds have risen sharply with the yield down and gold and the dollar are still in up trends. A mixed picture with lots of rallies and drops can continue.

However the situation is critical for the next few weeks and must be carefully followed.