Since the market traded to new lows on Tuesday night/Wednesday morning, buyers have maintained control to give the market its largest gains since before the highs on May 2nd. The move has coincided with my expected reversal on the dollar.
This morning we are seeing continued strength as the S&P 500 looks like it will gap up over 10 points from last Friday's close. Its a strong move, but it is not so strong that this gap cannot be filled today on a reversal back down to 1330. In any case, I believe this is likely the beginning of the move back up to retest the highs (1373.50 ES) and beyond.
The move higher follows strength in European markets on reports that Germany has drafted a new bailout plan for Greece. Asian stocks also higher.
There is solid resistance overhead at 1345 (ES) and again at 1350. I wouldn't be surprised to see a bit of selling to come into the market at some point this morning. That being said, I am currently long the market, I would look at a move back down to 1333-1335 (ES) to be a buying opportunity.
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