MBO Issue 30 (Jun 2014) Euro Cluing Us In
- Euro First Down Leg In Place
- S&P 500 The All Important First Week Of June
- Gold On Track For Its Previous Year Low Retest
- Big Picture Summary
Euro compression led to breakout upside first to 1.40 my upside target. The politicos in Europe know it is bad for Europe and took some funny actions to make sure it stopped right there. An FBO against year high and 1st quarter high is deadly. Euro collapsed back down. This time, it simply sliced through previous year close and dropped to my downside target below 1.36.
S&P 500 tagged the upside target of 1900 and beyond. Contrary to what most other people believe that it was overbought somehow (which implied that they wished it to go lower), S&P 500 did what it was likely to do – going higher first.
Gold dropped lower as expected no matter how hard people tried to pop it up. It is on track to tag previous year low in the 2nd to 3rd quarter timeframe as mentioned in previous issues.
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