The S&P 500 bounced higher today (after struggling yesterday), up .65% to 2162. We believe the near term profile target of 2170 will get approached. Our multiday target according to the profile is 2187. With the sharp bullish reversal in EUR/USD today, we believe there could be some follow through buying, bringing the Euro up to at least 113.20, possibly higher.
The U.S. bonds have fallen hard today corresponding to the rally in stocks. As we noted, the 170 level in U.S. bonds may serve to be a near term high area. NOV16 WTI crude oil is back above $48 per barrel today, and our next profile target above here is $49.10 area. Ultimately, we see a reverse head and shoulders on the weekly chart which portends a move to $54.