The key question for markets this week is how will they react to the Dominique Strauss-Kahn (DSK) news? Will the Dollar continue to strengthen keeping the “risk off” (we hate that simplicity) trade on? Are traders of the European periphery going to hit the panic button? Will this scandal cause the markets to snowball into a full blown flight to quality trade? (click here if charts are not observable)
Not so much in the U.S., but there are some ugly equity (major indices) charts out there and the lows of the week ending May 6 need to hold or this stall, pause, or whatever you want to label it, could turn into a rout. Apple, the leader of this bull market, took some major pipe on Friday breaking through the bottom a two week pennant formation and its 50-day moving average. Good luck next week!