With an almost empty calendar on Monday, it’s difficult to imagine that there will be a lot of headlines moving the markets. Because of this, we look to the charts for technical indications.
USD/JPY
The US dollar has broken above the psychologically important 115 level, and as a result looks like the call buyers will be encouraged. Any move higher will more than likely attract more call line, and it now has to be looked at as a resumption of the longer-term trend to the upside.
WTI Crude Oil
The WTI Crude Oil market stabilized a little bit during the session on Friday, but quite frankly it looks as if rallies will continue to attract but buying. The 20 day and 50 day exponential moving averages are crossing, and that’s typically a negative sign. A breakdown below the bottom of the range for Friday would also be attractive to put buyers.
CAC
The CAC broke above €5000 during the day, so this suggests that there is still plenty of call buying out there. Short-term pullback should offer value the call buyers will take advantage of, and what has been a very stable and reliable uptrend.
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