Traders turned bullish following Spain's budget reform. Rumors/Hopes of China's government providing additional stimulus further fueled this bullish optimism. Are we seeing a permanent shift in short-term bearish sentiment, or is this yet another bull trap/bear delight?
Brent Crude H4
Despite the strong rally upwards, Brent is still kept below $113.0 per barrel, which has been acting as a pivotal point since Mid/Late August. To see a bullish game changer, we will need price to move up above $113 and preferably above $113.8. As long as Brent is able to stay afloat $113.0 for an extended amount of time, the bulls will be encouraged to hold onto their long positions.
EUR/USD H4
This has also been covered more extensively here. Compared to Brent, EUR/USD appears to be better supported by the Channel Top. Again not a game-changing development but showing more bullish potential here.
S&P500 Futures H4
Price managed to pull away from Pre QE3 levels, which gives bulls hope but we're still trading below the Post QE3 Low on 20th Sep. If price push above 1,440, we could see price activity potentially moving back to the post QE3 trading range of 1,440, to 1,475.
XAU/USD H4
The most bullish amongst all. Gold is the only major currency/commodity that is trading above it's post QE3 high. However, we've seen price showing a false breakout of the trading range on 20th Sep before, which will keep bulls wary.
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