14/12/2011

What happens now with the big picture?


Technically the weekly trend is the most important for the long term trend. The drop during Monday and Tuesday and trading so far Wednesday has made the very important 8 week MA turn down for all indexes but the DOW. The week is not over until close on Friday but so far SP500 and FTSE is trading below this MA which now has become resistance points, SP500 1.237 and FTSE 5.475. The DOW which is the strongest index has been holding above its 8 months falling MA at 11.952 for a long time, but suddenly fell yesterday to close below at 11.949.6.
Today’s trading is above yesterdays close in all indexes after 90 minutes trading in Europe but below the new resistance points. Much can happen to change this situation before end of the week but once broken is always broken is my key word.
Finally the EUROS new low yesterday is very important sign for the long term picture. The currency is now technically very bearish long term.

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