U.S. Stock Market Still Bullish!

I mentioned yesterday that the U.S. stock market is still very strong, with the key benchmark S&P 500 Index, composed of the 500 largest U.S. stocks by market capitalization, was only about 10 points off an all-time high. Stock Market I’ve also written before about how important all-time highs are in stock markets, as a good statistical indicator that still higher prices are going to happen shortly. Furthermore, there is no stock market in history that has done as well as consistently in terms of prices going up, as the U.S. stock market. These factors add up to a convincing case that it’s beneficial to be long of major U.S. stocks or the major stock index right now. Continue reading…

Cable in Focus

After taking a back seat while other major currency pairs stole the show with a fair amount of movement and volatility (yes, I’m looking at you USD/JPY), the GBP/USD came back into the limelight today as the Bank of England prepared to release its monthly Policy Report and interest rate.  The price had been coiling up in advance of the release over recent days, stuck below the psychologically key 1.3000 level within a long-term bullish trend. The price failed yesterday at the recent swing high, which was a little ominous for bulls, so it wasn’t a great surprise today when following the Bank of England’s announcement, the price spiked down below the support level of 1.2900, and just kissed the further support level of 1.2850 before rebounding bullishly by 40 pips to a high (as at the time of writing) of 1.2890. If the price reaches 1.2900 soon, its reaction there should be significant, as a classic bearish play would see the level flip from former support to current resistance and hold. Continue reading…

All Forex Majors at Crossroads – Part 2

I wrote yesterday about how an exciting time looks like its starting in the Forex market, with all 3 key Forex major pairs approaching very significant support and resistance levels. The GBP/USD was in an uptrend stuck under 1.3000, the EUR/USD just beginning an uptrend stuck under 1.1000, and the USD/JPY also just beginning an uptrend and stuck under a key level and very long-term bearish trendline at 112.91.  Continue reading…