Long story short, the US is ultra-strong, whereas, emerging markets remain weak.
What a great start of the week for the bulls! Perhaps not for all bulls, everywhere, but for those trading US indices. Interesting fact; the stock exchange in my hometown of Warsaw, Poland, is performing terribly and most domestic traders are envious of the US. However, online Forex traders, can easily trade CFD contracts from anywhere through their trading account. Long story short, the US is ultra-strong, whereas, emerging markets remain weak.
If you’re wondering which instrument did best – it was the NASDAQ. We’ve mentioned it multiple times over the last few days, as it formed an inverse head and shoulders pattern and it was breaking and bouncing from the neckline. We did predict a rise, but such a drastic rise was surprising, even for us. Following this movement, sentiment is definitely bullish but there’s still a big chance we’ll see a bearish correction.
The SP500 also shot up from an even more perfectly beautiful inverse head and shoulders pattern, where the bottom was precisely on the 23,6% Fibonacci. The price is close to an all-time high, and it wouldn’t be a bold assumption, that it will get there soon.
Another inverse head and shoulders pattern can be spotted on the GBPUSD. The formation is up and running and has already broken the neckline and tested it as the closest support. With a beautiful hammer of the H4 chart, sentiment on the pair is positive, and will remain so as long as the price stays above the psychological support of 1.3.