Watching 850

SPX failed to get through 875 on Friday and completed a bull flag to 875. The 850 level is critical support for the bulls, it is the March trendline, a support level and a round number(physiological level). If the bulls can hold 850 it would be very bullish. BAC came out with earnings and WOW, what a shock they smoked their earnings. The market hasn't rallied on the news. Something to take note, that the market is not rallying on good news.


Watch the EUR/USD and Dollar. The EUR/USD looks to be bottoming or has the potential as this area could provide strong support where it currently is right now. If the EUR/USD starts to rally, look for energy to start to rally again. Oil(/CL) is down 4.67% @ 50.02 right now in pre-market. But the EUR/USD could fall further since it has broken its descending triangle pattern, which could put it at lows of 1.25. If the EUR/USD falls more it could bring energy down which could bring the overall market down.



The $USD index is forming a ascending triangle and looks like it might break. If this happens we could see the dollar rally more, which could put some water on the markets rally.


So to summarize, watch 850, watch 50 on the Oil, watch the EUR/USD, watch the breadth of the market and make smart trades!