Yesterday I warned of a potential head-fake to the downside and set out some levels to watch to determine if the pullback was for real. Well the head-fake looks like it was to the upside, just far enough to trigger 1.43 barriers and get the bulls rip-snortin’ bullish. As Millward points out, it looks like a “wash and a rinse” as S&P futures slump and specs are now scrambling to find an exit door.
We’ve dipped as far as 1.4220 so far. 1.4200/05 contained dips intraday Monday in New York while China was rumored overnight to have buy orders in the 1.4170/80 area. We may get the chance to find out.
