The collision of global markets and social mood

Wednesday, September 7, 2011

Heading Higher

Yesterday's trading plan cautioned:

"With the futures looking like they may have found an intermediate bottom, the odds shift to a bounce.

It could be a significant one, so pray for it.

Should one develop, Friday's 1186 highs are the target. I'm not looking for a meltdown from these levels."

1186 is still the target. The 38% retracement is at 1174.73 which could slow things down a bit, or cause a reaction (however futures are currently indicating an open above this level). The rally lacks an impulsive look so far, but it makes up for it with short covering ferocity and post-Labor Day volume.

The US dollar is backing off after a strong showing yesterday, which could add a little fuel to equities. Gold is breaking down after hitting 1923 yesterday.

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