Broke through resistance

Challenged and broke through 1.30290.

Test 1.3029

As predicted Euro broke the fib 61.8%. Expect to test 1.3029. Euro moving into overbought territory. Expect Euro to retrace before moving higher.

Breakout

Eurousd going for a breakout.

S&P Closes Below 1040, Will Stocks Whoosh Lower?

Stocks [.SPX 1030.71 -10.53 (-1.01%) ] ended the final day of the first half of 2010 in the red; with investors running for the exits late day, once again.

The S&P fell below the technically important 1040 level that it had held since February, generating what chartists call a "head and shoulders" pattern – a very bearish signal. Read more

S&P's Negative 200-Day May Be Positive for Stocks

In Tuesday's market mayhem, the 200-day moving average on the S&P 500turned negative for the first time since last year, an ill omen to some.

However, Birinyi Associates took a look at the occurrences of the 200-day turning negative since 1945, and found that it's mostly preceded positive stock market moves in the next week, the next month, the next three months and even the next year.

"On average, over the next month the market is up 2.37 percent, and it posts gains about 78 percent of the time. It's totally counterintuitive. It's something people who are bearish...are going to say is a change in trend. When you look and this actually happens, that's not the case," said Cleve Rueckert of Birinyi Associates. Read more