EUR/USD extended its downtrend last week, with the pair reaching a new 2-year low in the lower 1.2500s as of the European close. The parabolic USD/JPY rally reversed sharply after hitting psychological resistance at 110.00 midway through last week.
Day trading provides the rewards of a daily dose of adrenalin along with the hopes of gaining a quick 20 pips. Sometimes, however, a longer duration perspective reveals opportunities that go beyond the intraday noise.
This is an extraordinary time window as we hit 987 months off of the 1932 bottom and right there at the blood moon we’ll be a couple of days off the 144-month/12 year anniversary to the end of the Internet bear.
On Friday, the Nikkei index managed to make back some of the losses from the previous session when the global markets had tumbled. Ahead of the weekend, this was undoubtedly due to short-covering and also some "bargain hunting."
You know by now that nothing bad happens to the market when the BKX is up. Dow theorists will also tell you nothing bad happens when the Transports are up. So when both are up there’s no use fighting the tape.