Monday, October 31, 2011

Hourly SPX with Potential Targets for Continued Strength (FreeStockCharts.com)

The markets have been rather volatile of late.  A move from 1075 (Oct 4 low) to Friday's high of 1292 (Oct 27) on the SPX shows recent strength has been nothing short of eye-popping.  While uncertainties remain in China, and Europe, and with the FOMC meeting this week - we can expect that the volatility to continue.  There also continues to be copious amount of government intervention --- witness the move on the Yen overnight --- and some news of economic stability and strength --- rail traffic in the US continues to climb - oil has come off it's lows of $74/bbl and popped above $90/bbl again - Dr. Copper is leading the rebound in commodities - will it be enough to keep the fires stoked in these tumultuous times?  I believe that regardless of the path chosen forward, it will be fraught with many challenges as the real pain is avoided and the can kicked once again - till the next crisis - and the next - and the next.  Watching and Learning.  Trading On.

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