Long time no see.
Unfortunately, due to my other activities I will be able to post only 1-2 times a week. During my absence the market showed that this rally has really got some legs. So, I also changed my intermediate term view from bearish to slightly bullish. There are two possibilities:
- Market will correct itself a little bit and then will continue to go higher on lower levels throughout the summer and we won’t see any significant correction until Autumn, as every pullback will be bought.
- We will be stuck within a boring trading range, until some significant news will shake the market one way or the other,
So, here is my view on the market for the coming months:
EUR/USD – ready to take off.
GOLD – possible pullback, continuation of the up move.
NASDAQ – this is the weakest index of all. Still it has ton of support at 1280-1300 levels. And we won’t see any dramatical change in trend unless 1240-1250 is taken out. Until this happens I would be the buyer at all key support levels.
S&P 500 – Fist chart shows a really nice buying area at 890. On the second chart we can see a bigger picture, which shows potential Whycoff formation with a target of 1200! Still the market needs some time to consolidate itself before such a huge move up. I woul suggest buying at ~870. Bulls are safe here, while we are trading above 840/870. If this levels are taken out, I would have to reevaluate my view.
