The market broke out of the bearish trend today to test the TA and it closed lower after closing the gap from early morning. Technically speaking the market could be setting itself up for a big up day on Monday but given the overall short term negative trend it's a guess at best on which way the market will go next week. If the market keeps testing the TA and making higher lows then we can assume there will be a new high to come. For the bearish scenario to really gain momentum the market would need to break the weekly low of 1326.
I am holding my longs in the meantime. I think the government is having the cake and eating it too since it has the liberty to print money (there are willing lenders at low rates) to fend off any kind of slow down while making US made goods and services more attractive by depreciating the dollar. Technically, it's a win/win situation and markets should continue to rally in all asset classes.
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