MBO Issue 31 (Jul 2014) Euro Bull Trap
- Euro Bull Trap In The Making
- S&P 500 Pullback Trigger Identified
- Gold Seasonal Bounce In Progress
- Big Picture Summary
Euro has flushed to the 1.35 round number right above the first quarter low and bounced. The crisis in Eastern Europe has delayed the inevitable drop as people are pulling capital out of Russia and other Eastern European countries back to their home countries. As mentioned last time, history is repeating itself here with people turning into Euro bulls slowing at the current price level.
S&P played out the analog (posted in Special Update) quite nicely. First part of the drop and the surge right after closely resembled to what happened before.
Gold stopped dropping at a higher low that is an important yearly STOPD price level. It has since moved to 1320.
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