Today in first our of the day CLF went up despite XME and SPY was heading down, but eventually stronger wind took his place. Where it will blow tomorrow? Up or down?
Price action will fluctuate in rectangle, it could form descending triangle, ascending triangle, symmetric triangle.
But eventually after pullback of rectangle or not it will go up. Maybe.
I think today "Consumer Confidence" will be a little worse.
Tomorrow "GDP Growth Rate QoQ Adv " will be as expected.
Tomorrow "Fed Interest Rate Decision" will be same, but it should be mentioned about increase of interest rates in near future. That could be a stop sign for stocks. Right?
Fed Interest Rate Decision is announced in 2014-07-30 (this week)
BoJ Interest Rate Decision is announced in 2014-08-07 (next week).
If Fed rises the interest rates it is positive, or bullish, for the USD.
If Fed keeps the ongoing interest rate it is negative, or bearish.
If BoJ rises the interest rates it is positive, or bullish, for the JPY.
If BoJ keeps...
If Fed will not say any surprise, US GDP will be as expected, so we should see little bounce, but as time will pass more bad news about EU economy will occur and decreasing US unemployment rate will bring incentives increase interest rate more possible or even actual, bigger leg down should evolve.
Touched 250 MA, if it goes up today (I doubt, because SPY environment not looks very promising) it will be a good start to wait for pull back and unleash funds to buy
