Friday, 18 May 2012

DAX attempting to rally from trend line break, S&P below 1350ish looks like a shot duck

The DAX is attempting to rally following its trend line break/test. Any further rally will likely be reflected in other stock indexes worldwide. What's the upside potential?

The S&P looks like a shot duck to me while it remains below this week's highs, just over 1350. So any rally that may be beginning now, has that much room to move before it casts serious doubt on the immediate bearish case, in my opinion.

AUD/JPY breaks lower from long term trend channel (updated)

Yesterday's bullish USD/JPY post was spectacularly badly timed, given that the USD/JPY fell sharply overnight. Can't win 'em all. Longer term, maybe bullish USD/JPY will be the way to go, but maybe not. In the meantime, you've gotta play what's put in front of you, and JPY strength is showing clearly on this AUD/JPY chart, especially if it moves at all lower from current levels.