Saturday, August 9, 2014

Breakout or Smoke?...8.9.14

Things didn't look that rosy at Friday's open and continued to deteriorate until 3 hours before the market close when news cam out that Putin was ending "war games" in the Ukraine...which apparently sparked wild exuberance and a fair amount of short covering to push the markets into a nice green Friday close.
Technical levels were substantially oversold so the spring was coiled in the bulls favor but a lot of shorts got caught in the uptick and had to buy to close so the bulls are swimming in muddy waters for now.
Monday should tell the tale a bit clearer.
Per the closing signal on M3 cash is the current signal. Per the closing note both pair charts are at a zero line cross...typically favoring bullish behavior