Good Morning,
One more day until expiration and I will be watching things closely as the 1350 seems to be a key level going into the final day. Europe is down due to Greece fears - anyone getting tired of the "it's all about Greece syndrome"? The US is up on better than expected data coming from the jobs and manufacturing sectors. Bernanke was on the docket, but his speech was a dud.
Technically, a leader in the "old" economy would be Financials. Looking at XLF, we had our MACD bearish divergence - see the webinar link below for more information on MACD's and bearish divergences. THE leader, AAPL had a big reversal day and overall, the SPY had a very bearish candle yesterday - let's watch the close today. A close below yesterday could signal some a bearish entry based on the bearish divergence in its MACD. As always, stops and trading plans are necessary to enter any trade comfortably. It should be an interesting trade up here at these "lofty" levels.
With Greece being in the news, the EUR/USD dropped pretty significantly over the past few days, but with the inter-market relationships hanging in there, the EUR found some support and had a swing/intermediate trade to the upside. It was a tough call down there. Obviously the risk reward down there was not a good place to be a seller as it already came down 350 pips. But buying it as I mentioned, was a tough call due to the fundamentals at work. This is the point of understanding value using Fibonacci retracements. You are able to understand the longer trend, the amount the trend retraced and then decide where your stop and target goes depending on the volatility, your trading timeframe and the range of the markets:
I will be looking to see what the SPY does at the close today. If we close at or near the highs of the day, we may run a bit tomorrow into the weekend - the famous, no reason for it, Friday rally.
MACD Bearish Divergence Webinar: https://www1.gotomeeting.com/register/542544601
Most recent webinar on Moving Averages: http://www.youtube.com/user/InterbankFXvideos?ob=0#p/c/928F4D24203A3621/0/4bJsyd8VIHo
Happy Trading and Be Environmentally Cool
Coach Brian
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