Looking at the 200 SMA on the daily S&P futures chart shows that the market pushed to within 10-15 points of it last week. That really may be the test that shows us momentum, sentiment, and desire to accept risk. said TheLFB-Forex.com Trade Team members. The interesting thing being that a test of 900 on the S&P would have the dollar index testing sub 80 numbers, and that could be a huge triple whammy; Stocks @ 900, Dollar @ 80, Oil @ 65? It would be hard for the market to hold the dollar values then.
The Dollar/Equity link is dominant, but we need to watch oil creeping higher because that really could signal that euro, aussie, cad, and cable could break and easily hold their daily chart areas. Next week is probably the biggest we have seen in a while. We are straddling the major Trade Plans all of next week, all of them, every day, it could be huge and we plan to extend the pip count.