So what's next? Well we are def on the brink of a big move in either direction. It's just tricky to know where. Stocks have run really fast in the last week straight into resistance at the same time as the dollar index fell from 81 to 78. It seems like risk appetite is back on the table for the time being. I do think the Euro and cross rates like the EUR/JPY want to go higher into the next several months. The Euro is much more bullish than Euro/Yen overall so it should be interesting to see if they diverge much more. If the Euro breaks 1.43 I think you can easily see it get to 1.46 quickly.
Looking at the SPX I didn't really like the end of day selloff but you gotta still have a long bias until we lose 940. I tend to think we could trade lower in the next week however. We have that big gap below us down at 906 from last week. It is waiting to be filled. And gaps on the SPX almost always get filled so keep that in mind.