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SPX hugging 1457-1459 ahead of US auction results. Best GUESS is that it is going to be a good one, fuelling a small rally, i.e. more monies for risk taking. However should not go far.
EUR may break 1.4400 and settle into 1.4450, Monday's Asia high. Awaiting Tuesday housing data.
Update 9:45 am ET
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1.4400 holding well, seems like the shorting point for the US bulls. the USD move has been working like clockwork. the support, resistance are well executed. The pple behind the moves are definitely very confident, and determined.SPX now at 1458, also not helping Euro.
EURUSD: possible bottom at 1.4328, now heading for rebound after the ISM today, housing tomorrow. Holding below 1.4400 Monday. With US treasury auction result release at 1 pm ET.
SPX: 1408 projected low by 21 Dec 2007. (remember the movie: 1048 by John Cusack)
Asia market drops a lot on Monday, same for Europe. Let us see
how the US market responds to the Goldman Sach, Morgan Stanley.
If you have seen the movie "1408" based on Stephen King novel (http://www.1408-themovie.com/), you would probably know the curse shrouding the market.
John Cusack entrapped in the room 1408 has only 2 choices:
(a) relive the horror again and again
(b) to commit suicide in whatever fashion
Hence my call is for the SPX to continue its downtrend, hitting 1408 this week, 21 Dec. Then the market would be called upon to decide:
(a) relive the zig zag again and again, with a upward break
(b) to dive once and for all
Now what would the market choose, and less importantly what would FED do on the fateful day 12.21.2007. What if the FED does nothing ?
As for EURUSD, I urge caution, EURUSD may have bottomed at 1.4328 short term.
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