Market Review 7/27

I expected a rally this week, but the last two days have been euphoric. So much so that I haven't changed my opinion about where the market could go in the next few weeks.  Policy that the ECB and the Fed are suggesting could take months to implement.  During that time while they negotiate terms and agreements the problems in Spain and Italy are not going to magically disappear  Remember in a market like this volatility and big swing are king.  The last 2 days have reflected that.

The price action today certainly cut through the resistance at $136 and resistance trend-line and even jumped over $138 resistance. With things moving so rapidly I have a feeling and we should see some slowing which I believe will be around $140 .  Most of the move we have seen are investors who were short and are covering.

As traders we need to be patient, we know that the Fed and the ECB are ready to act a song that has been repeated often, but that is there job. Look for the top to this rally start forming next week.  The ECB president will speak next week and I think that the market may be let down by his comments.  So as trader be cautious entering into bullish trades this market has been moving and you don't want to get caught in a bad postion.


  
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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives