Market update

Credit Spreads are continuing to widen and we see an increasing number of stories about the negative impact on the economy from the faltering housing market. Today’s Existing Home Sales is key.

EURUSD being rejected at 1.3411, but ended the day higher. We are still bullish. The USD must head lower.

Yesterday’s lack of momentum in US stocks could turn out to become a problem in the technical picture. Another day like this could signal a severe reversal.