This morning, the situation on foreign markets was the opposite of yesterday’s, which, in practice, means that short-term long positions are now preferable to short positions. In general, the correction after three consecutive days of growth on the S&P 500 has likely been completed (with a probability greater than 75%). Thus, the main working hypothesis for active traders lies in betting on U.S. stock indexes reaching new local maxima.
What exactly might stand in optimists’ way? Despite the fact that recent highs may serve as the nominal resistance level, the technical picture nevertheless looks to be successful for buyers. Should the news background stand in optimists’ way? Probably not, because in recent weeks, investors have been interpreting the news according to already existing attitudes. What about Ben Bernanke? Possibly. If market participants are still expecting an early start to quantitave easing, they will likely be disappointed.
