Monday, October 24, 2011

On a string of hope - 24 October 2011

Just a quick note from my iPad today...

Over the weekend, the European optimism based on hope propelled both the Euro as well as the ES futures further up from Friday. However, the hopes were dashed once European economic data released did not show a nice picture.

The ES now looks toppish, having further extended the rally from a failed rollover last Wednesday/Thursday. It looks mildly bullish if today holds the test of 1220, after breaking out of a tight consolidation range late last week, albeit on lower volume.

The Euro made a valiant rally on optimistic hopes and came right back down to the point where it started the early Monday rally. It is now testing the moving averages and may be consolidating over a broad range.

DX, the USD futures, is similarly testing the EMAs.

The equity market looks uncommitted to me, with mild bullishness that I would be watching for very quick reversals. I usually would stay on the side until a potential trend signal develops, but that's just me.

Be wary!

The MadScientist
24 October 2011

Note: Any material posted here is of my sole opinion, and my opinion may differ or change. This is NOT a solicitation nor advice to act as a consequence after reading these materials. The materials presented here are intended for educational purposes only.

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