19/06/2014

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The news from FOMC regarding interest rates etc at 20:00 Wednesday which I said always move the markets did so in a powerful short covering environment where all the short positions - I assume - were taken out since last top. It took exactly 2 hrs and SP500 was the only index to take a clear new all time high because this index is the most traded. NAS reached it earlier top but DOW ended below its high. FTSE and DAX made a less strong  jumps and HSI did not react at all this morning but NIK made a new high.

After a big short covering like this it use to take at least one day until the 2 hr 8 and 21 MA has reached the top area and usually the indexes are not moving much until then so I expect the SP500 to move just a little until US open today.


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