Weekly Forecast - Dec 19th

SPX

I will be showing the SPX and not the /ES since the futures contract just rolled over to March 2011 and I have nothing drawn on the new one yet.  As we can see the market has continued to push higher for the last 3 months.  We've had areas of consolidation but no real major pull backs.  The areas of consolidation are starting to come more frequently than we've seen over the last two months.  This is understandable since the market hasn't seen levels like this since 2008.  Market continues to get overextended and then level off until pushing higher still.  Right now our new level to break is 1243 before the market continues to inch higher.

EUR/USD

 

 

EUR/USD has been bouncing around between its trendlines from last week.  EUR/USD is poised for a little more of a downward move.  Could see support at the 200 and 150 day moving averages, and also gain support on the declining trendline. 

GBP/USD

GBP/USD has had some real weakness as it tries to penetrate its support at 1.552.  Getting through this support will be quickly met with the 150 and 200 day moving averages along with support at 1.534.  The currency pair could see a bounce here but will still see resistance at 1.58.

USD/JPY

USD/JPY still trying to break that resistance at 84.41 where it will complete a cup and handle.  Market couldn't close above it during last week but it did weaken it.  Any sell off here will be caught by the 50 day moving average.

NYSI

The NYSI reversal indicator finally saw its cross from last week.  This shows that more upside is in the future, and a move into shorts would be a bad idea at this time.

Kept the Weekly Forecast short and simple this week as that is how the markets should react in the upcoming weeks.  The holidays and the end of the year are here so volume should be fairly light.  Market will probably continue to move upward to flat but I wouldn't expect any major shifts or developments till the new year.

Reports and postings will also be light on Bullogic as we prepare for the holidays.  Everyone have a safe and happy holiday season.