Friday was a bit of a fake out session. It ended up suggesting that the S&P might be tracing out a rising wedge.
Now I'm looking for 1200, the 1204 38% retracement, and once again, the 1260 area that I mentioned over a week ago -- it's still there. The 61.8% retracement is at 1267.81.
The market has expended a huge amount of energy and feels like it's resting by drifting higher. There is still a lot of work to be done below, but I don't think it's ready just yet.
The most important tell may be the Swiss franc since last Tuesday. Its strength cannot be denied, and may be saying, finally, that confidence may be evaporating throughout Europe. Yes, I know there are rumors of intervention, but that is to be expected at the end of a 26-year trend.
The other big tell is Brazil. I'm still working on a post about it which should be finished soon.
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