For the past month, we have been trading in a tight 30 pts. range in the SPX, while getting a pretty violent reversal in EUR/USD. This is the clear indication, that some sort of pullback is looming in the S&P 500 index. I personally still tend to believe, that there will be one last rise to the 1130-1140 area followed by the sharp reversal in the mid January.
As for the next week, I am looking for longs. The sharp sell off in the EUR is also indicates a high possibility of a rebound. My target on the pair would be ~1.47.
Also GOLD may have also finally found support at 1090-1100 with a strong positive divergence in MACD and a double bottom pattern on a 30-min. chart. This is a pretty safe play, with the target 1150-1160 and a stop loss of 10-15 pts.
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