Last Friday at 06:00 Bank of Japan (BOJ) voted 5-4 to increase austerity money in Japan. This unexpected news sent all stock indexes very strongly on upside. This movement did not end until close Friday. SP500, DOW, NAS and FTSE were open for trading when the news broke and there were no gaps. In Europe there were big gaps on opening which held the whole day. As you see from the hourly charts below the gaps held more or less in the same area where the gaps started. SP500 could not retreat from the upsurge because the momentum kept them on upside and the European indexes as well.
The question is now if the up trend will continue Monday morning at opening or turn down. Can the Japanese effect take the market even higher or was it too high? The US indexes will probably give a hint already during the opening hours.
At the same time four of the indexes are at the all time high but they have not technically taken out the old highs. In my view they are double tops intra day because they need more points above earlier highs to make new waves on upside.
Monday could be a very interesting day with this back ground.
The question is now if the up trend will continue Monday morning at opening or turn down. Can the Japanese effect take the market even higher or was it too high? The US indexes will probably give a hint already during the opening hours.
At the same time four of the indexes are at the all time high but they have not technically taken out the old highs. In my view they are double tops intra day because they need more points above earlier highs to make new waves on upside.
Monday could be a very interesting day with this back ground.
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