Where The Market Stands Now
Last week, there were plenty of warnings sign that the markets would pull back. I posted my Aussie/Yen chart to support my thesis. The markets did indeed pullback. However, since then, the printing press has turned on, and the Aussie/Yen as well as the Euro/Yen have now made new highs since Thursday. As the Yen collapses, this is very bullish for the markets. My longstanding prediction has been: long term bullish as long as there is money printing going on (i.e. QE3).
The chart below is the S&P 500 for the last 6 months on an hourly time frame. The markets have had a nasty drop since the job report, but have attempted to regain the highs. However, the market was stopped cold in today's continued bounce from Friday, right at the trend-line marked in red. It is somewhat of a concern that the market rebound was stopped there. The good news for the bull is that, the trend from the November lows are still intact, despite short term concerns. Feel free to analyze the chart below and tell me what you see (leave comments below). Bullish or bearish?
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.