A Foreboding End?

Closing decidedly down for the day and week the short term outlook for the market continues to be bleak.  Note in the following chart how the uptrend since March is about to be tested...and the test will come right in the long term key level of 1320.  If both of these support levels break, selling intensity will increase.

Following up to the earlier post about the Euro (relative to the USD), selling continued in earnest following the break of support.  I'm currently holding a healthy profit short the EUR/USD.

With today's trades, I've now increased my account more than 600% since the start of this blog in February (see the update at the bottom of the page).

Expiration Inflection

No abrupt moves have materialized mid week.  It's clear that maintaining long positions established in the weakness of Monday have been sufficient to produce profit into expiration today.

I note that yesterday's price action is a consolidation at the key level of 1340/41.  This comes at the time when the dollar is possibly finding support (the Euro broke the recent rising support line last night), as are bonds.  No clear signal yet, but the conditions are set for the resumption of a decline in equities today or Monday.