My target of 1250-55 spx has been reached and now what? Will spx continue to 1300 and above as most people expect? My view and feeling say no. I think spx is ready to fall now....Eurusd looks corrective without any hint of impulsive move upwards. Next big move is a big leg down. I think that those two combined with a downgrade of a big european country looming from S&P will push the markets down.
European and specifically italian spreads rise to extremely dangerous territory (above 500). Long positions should be avoided if not starting a new short position to target below 1200. More updates will come soon as the volumes come back after the holiday season.
UPDATE 28/12/11 16:55
Eurusd breaks down short term support. 1.2950 medium term support will probably break too since the movement of the last few days has a corrective form and not a hint of an impulsive move. The decline from 1.3070 was steep and we could see a back test of the green support line or even the blue trend channel....
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