MBO Issue 35 (Nov 2014) Impact Of BOJ Double Down
By Lawrence- Review
- Euro Renewed Its Potential To Bounce On Weekly
- S&P Playing Catch Me If You Can
- Gold Bearish Setup In Place
- Big Picture Summary
Review
Euro stopped dropping at the 1.26 boundary as expected. It did not go much higher though which is also expected as a bounce from such strong downward momentum is likely to be weak.
S&P fulfilled the correction in October as predicted. It extended slightly more down to 10% level and produced a short term market breadth oversold. Since then central bankers panic and worked together with coordinated effort pushing the stock market higher.
As explained last month, gold failing to clear the down channel resistance would imply breaking the down side triangle to be the likely outcome. Gold dropped below the horizontal support line since.
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