(click the picture for a bigger view) (weekly chart)With Asian markets sharing the optimizm, the short term up trend continues. This week we have some considerable figures in Euro zone. On wednesday we have US Wholesale Inventories and MBA Mortgage Applications.
S&P500 is nicely above 61.8% fibonacci retracement level of the early year losses(834), heading for full recovery . Also in the graph , you see it is trading above 20 week average which is around 842. As long as we hold on above of 825-835, this is a very likely scenario.
Earnings for the fist quarter begin in this week. So lets hope the figures for the companies are not going to be worse than expectations.
Ride the wave!
Update 15.50 amsterdam
S&P 500 is trading around 825 after continuous 3 hour sell off. The main reason behind the sell off was the comments about the possibility that the banks wont be as profitable as expected.
If you combine this with the constant comments that this is just another bear market rally,it is understandable that the market participants were ready to run away.
Concerning our uptrend, we should close above 825 or the strength of the market will take a big hit. For my own position, I wait for the close, i wont be surprised if the bulls buy the dips and take the market above 835, supporting the short term up trend.
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