20080723

Obviously it's not longer lower-highs, lower-lows pattern. The index opened with a nice gap just over the high from 10th of Jul. That gives us the reason to be bullish or at least hold with short positions.
We should trade what we see, but personally I just don't trust this rally - with the worsening economy forecasts, failing banks and government tricks - it's hard to believe the downtrend is over.

Nevertheless, the medium term trend is obviously not so easy to forecast now.


Please also note I've also changed the Fibonacci retracement level to the top of May for both indexes. I think that's a proper way of drawing it. The next strong resistance will be low from January. The tomorrow's gap will act as a resistance.


USA closed green, therefore rally should continue.

Please note - for the rest of the week I'm out and the charts be updated.