However, in early trading much of Asia was in the red while surprise, surprise the SSE was in the green.
However the NQ ended up at its highest level since markets turned back up at the end of November. The SPX is testing its highest level since the end of October. We should be hitting turbulence at these levels. We may have peaked for the time being with the NQ needing to retest the gap up. If not we probably only go slightly higher. I favor the high on Friday as the Euro drops to slightly lower levels before a bigger bounce. There’s enough momentum in the Euro for it to get to 125-126 against the Greenback before it makes a bigger bounce attempt.
Click chart to enlarge
In the stock market, we come to the first semi important timing window of the year. By Wednesday the market will be in the 720 day window off the 09 bottom. It’s possible we could be topping a couple of days early. 720 is an important geometric vibration and while it’s not as strong as some of the Fibonacci numbers we follow one must respect its potential. So while I do think a reaction is due I sincerely doubt we are looking at a market top given the conditions. When a market tops out for good there are more signs. First of all conditions tend to be more euphoric than they are now but also patterns give clues. Breakouts tend to fail and for right now breakout are materializing, not failing. Finally, if Asia continues moderately lower but the SSE does not confirm it that would be the most positive sign we could get. Let’s see if early conditions from Sunday night take root.
Jeff Greenblatt is the author of Breakthrough Strategies For Predicting Any Market, editor of the Fibonacci Forecaster, director of Lucas Wave International, LLC. and a private trader for the past eight years.
Lucas Wave International (https://www.lucaswaveinternational.com) provides forecasts of financial markets via the Fibonacci Forecaster and other reports. The company provides coaching/seminars to teach traders around the world about this cutting edge methodology.