Even a dead cat will bounce if you drop it from high enough, the old saying goes. Well most of these markets have dropped from dizzying heights and are rip for a rebound. Many mutual funds close their books on Friday for the year, so they appear to be putting some cash to work, as they are paid to do, before year end. Whether they turn around and sell again next week is anyone’s guess, but it feels good at the moment. The US is outperforming the rest of the developed markets by a mile and the emerging markets by several miles, in the last few days.
EUR/USD resistance is eyed at 1.2605/10 and again at 1.2685. 94.00 and 94.50 are resistance in EUR/JPY. Equities are up about 2.25%.
