Directional Analysis

This is a quick video to show you what has been going on since the over night trading in the S&P500 Futures. The pattern this Index is in, is a crazy pattern because it keeps making higher highs and lower lows. This makes the traders in the pits keep reversing their positions and it only feeds on itself until it resolve either way. Now from what I see in the US dollar index and the commodities I still believe the market will continue to higher levels, but because of this pattern we may not see that until early next week. I will make a video Update the soonest I see a confirmation of the direction. Until then, have a great weekend everyone.

The market continues in the uptrend channel which began back at the end of December 2011. The last couple of days have been just a consolidation before the S&P 500 moves above the infamous 1370 area. The Technical are all telling the story for a higher move on the shorter term, although I am starting to get in the camp that a pullback will be healthy for the longer term. Other charts which are also confirming the technical analysis of the Equity market are the chart of the US dollar which continues the move to lower prices. And lastly the commodities are also benefiting from the waterfall of the US dollar.

Today, the Market Futures are showing some true positive movement. I say this, because for the past week the markets were showing some signs of consolidation, but today’s premarket action has triggered some key technical bullish signs. Also the US Dollar futures are indicating weakness in the premarket session. The US Dollar has been a good indicator, for the past few weeks, because is moving opposite of the US markets. We can also see this in the Forex pair Aus Dollar/US Dollar (the strength of the Australian Dollar relative to the US Dollar). Finally, Gold is also continuing its rally to higher prices. Are we looking to the next rally? The technicals are definitely showing this at this time.