Well, it’s another morning of lifetime highs across the board. Last Friday’s jobs report was the truckload of jet fuel the bulls needed. We’ve reached escape velocity, as the breakout from the pattern shows:
I believe an important driver of this strength has been the USD/JPY, which bounced firmly off the Fibonacci level I’ve marked in magenta below. The rise has been fast and furious, but take note of the green tint now: this is the next level higher, and one I believe will cap this rise (in spite of the daily chatter about big “helicopter money” announcements forthcoming from the land of the rising sun).
Of course, on mornings like this, a portion of this may be wishful thinking on my part. The bulls are large and in charge, and at this point, only a string of earnings shocks would reverse the tide.
