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Sunday, February 08, 2009

Market SPX is set for a powerful Bear Market rally. DIA, SPY, QQQQ, TSX, CDNX, DXY, GDX, HUi, XAU


Market is anxious for a rally. TARP2 and Stimulus will be the bifurcation points, expect it to be powerful enough that some will be caught on the upside before it will go down to retest the lows. But it will be tradable and will bring risk appetite back with new look at US Dollar fundamentals, which are not warranting its levitation dreams at all.
Technically we are sitting at MA 50 break up, SPX is stronger then DOW at the moment and NASDAQ is stronger then SPX. Once financials will be running on TARP2 markets will all break up above MA50s and towards MA200. Please notice daily Head and Shoulder bullish reversal, with lows in October - November 2008 as Left Shoulder, Head in panic November and Right Shoulder in January - February 2009. STO is decisively positive and confirming accumulation, MACD is turning positive, RSI is confirming new highs.
For us observation on general markets is a reference point and a sign that new money flow will be available into Gold, Mining and Junior Mining sectors. Canadian Venture CDNX will benefit the most from Fundamental and now Technical picture as well.

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