…if you drop it from high enough. After falling in a virtual straight line for the entirety of the Obama administration, stocks are set to bounce at the open today. Heck, we’re do for a 10% bear market rally any time now, but unfortunately the backdrop suggests rallies are for sale rather than a turning point at this juncture. The market has voted thumbs dowm on the Obama stimulus and budget plans and until they are substantially modified, expect any bounce to be no higher than a dead cat.
Should we get a significant bounce, that would take the immediate downside pressure off EUR/USD and squeeze out the fresh shorts taken on the loss of 1.2500 last night. 1.2600 and 1.2650 are resistance on rebounds near-term.
