The end of this nearly 90 degrees run up the last weeks is most likely the final wave in the up trend since 2009. It has all the marks of a three wave extension. Two waves are done. Dec 13 until Jan 2 nearly always have trends like this. But there is very seldom a bull market goes on for more than six years. The top can come any time. The very good Employment numbers surprised the markets and Fridays bar is the result. That will be forgotten Monday. Very low turnover and a few computers are lifting the indexes. Now I think the value of the dollar day by day is the only thing to look at. All the biggest news for this year are in the prices. Two full weeks to go. Usually trends use to continue like this over X-mas and the dive in January. The big players use to take their long term short positions at this time of the year but everyone want to short the top. That is what I think is going on.
There are two things that can change this. First a break down of the Euro that has penetrated its long term triangle. Second a further big drop in oil.
There are two signs that the weekly trends have reached it final highs. One is NAS with an eventual double top being created. The second thing is that the same thing has happened on FTSE.
This is the most important trend technically for the year and the least observed.
There are two things that can change this. First a break down of the Euro that has penetrated its long term triangle. Second a further big drop in oil.
There are two signs that the weekly trends have reached it final highs. One is NAS with an eventual double top being created. The second thing is that the same thing has happened on FTSE.
This is the most important trend technically for the year and the least observed.
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