Overnight the Euro tested the 1.18 handle and looks to be retesting that level which was the target zone I cited on Saturday. Stock futures reversed higher after the Euro bounced off of this level and this bodes well for a continuation of the rally. The lack of a 3rd of 3rd continuation gap down also bodes well.
My view is that last week's action was a b or 2nd wave flat correction. Now that it is complete we should see a move higher over the coming days, but markets may spend a few days building a longer base from which to move higher first. In any case, I will not be adding to index longs until we see a minimum 1% move higher on higher volume.
I have added two new short term long orders this morning with stop-limit entries. If the market moves higher they should be triggered. I'll let you know how they work out.
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